Fuel Prices

 In Westminster last week I took part in a debate on the cost of petrol prices.  The last Government increased the cost of petrol twelve times and we are now dealing with the consequences of this.

Petrol prices are painfully high at the moment and it was right that Parliament debated the impact this has on people. I know the feeling all too well of being shocked at the price of a tank of petrol. Families are too often unable to use their cars simply because of the price of petrol. High fuel prices are largely the result of the high price of oil internationally and this inevitably leads to inflated costs on the forecourt.  It puts a great strain on all of us and does little to help our economic recovery.

The Government has helped to reduce the cost of petrol at the pumps.  It cut fuel duty by 1 penny in April this year; abolished Labour’s fuel duty escalator; introduced a fair fuel stabiliser; and increased the tax on oil and gas producing companies, who are making unexpected profits on oil prices that are far higher than those they based their investment decisions on. The fuel stabiliser will help to keep the price of petrol at a more predictable level. This package is worth an estimated £2 billion and means that fuel is now 6 pence lower than it would have been under Labour’s plans. 

Fuel prices affect the whole economy. If petrol prices are high then so is the price of food in the supermarket. Everyone from farmers to retailers are affected by the price of fuel and high prices mean higher inflation. Petrol prices will no doubt feature in the Chancellor’s Autumn Statement and Budget, and I am sure that he is very mindful of the impact that the high cost of fuel has on families, businesses, and of course, the economy.