Commenting on the news the Coalition Government has decided to postpone the August fuel duty rise, North East Fife Sir Menzies Campbell said:
“Because of this decision fuel tax is 10p a litre cheaper than if we had continued with Labour’s plans.
“For many people in North East Fife a car is not a luxury but a simple necessity if they are to do their jobs, get their children to school and go about their daily lives. While the oil price is falling postponing the fuel duty rise is the right thing to do, ensuring savings can be passed on to motorists at the pump.”
It was announced on 26th June that the Government would not go ahead with the planned 3p-a-litre rise in fuel duty in August. As of 1 April this year, the average pump prices could be approximately 10p per litre lower than if the Coalition Government had implemented the previous Government’s fuel duty escalator.
In the 2011 Budget and Autumn Statement the Government took the following actions to help keep the cost of driving down:
• A cut in fuel duty since April 2011, of 1 pence per litre
• Abolition of the previous Government’s duty escalator, which added duty above inflation every year until 2013
• Introduction of a fair fuel stabiliser
• Deferring the increase that was planned for 1 January 2012 to 1 August
• Cancellation of the original increase that was planned for 1 August 2012 to ensure that there will be just one inflation-only increase this year.