The Chancellor is being urged to scrap a planned fuel duty rise amid soaring diesel prices that are helping the Treasury enjoy a “VAT bonanza”.
With the autumn Budget just a month away, the RHA said most people wanted the duty cut or frozen and that a hike would equate to a food price hike: “With pump prices climbing rapidly again, putting a tax rise on top would push up costs for every business that moves goods, and for every household that buys them,” said RHA MD Richard Smith.
“Our first ask of the government is simple. Change course now, don’t put fuel duty up!
“Scrapping the rises planned for January, March and April is the cheapest inflation control this government has.”
The business group said an essential users rebate would also help to protect jobs and businesses.
FairFuelUK said fuel retailers had doubled their margins in the last five years, even as global oil process had fallen over the same period.
The campaign group said there was “opportunistic profiteering at the pumps” and the government had failed to protect drivers.
“This government needs to wake up,” said FairFuelUK founder Howard Cox.
“Drivers are being hammered by shameless, unchecked profiteering at the pumps, and the Treasury is quietly pocketing a VAT windfall from every inflated litre.
“Retail margins have doubled since 2021 while oil prices have fallen — it’s daylight robbery.
“On 28 October, the Chancellor must deliver an immediate cut in fuel duty, or at the very least guarantee a freeze for the lifetime of this Parliament.
“Anything less is a betrayal of every motorist, every small business and every haulier trying to stay afloat.”
