Osborne urged to not put petrol prices up
Looks like George Osborne wants to put petrol prices up, which will surprise precisely no-one, once the Budget comes around. However, his fellow MPs are against the idea, and are urging the Chancellor to abandon this rise at the fuel pumps.
George Osborne will give his first Budget, which is not influenced by Liberal Democrats, on July 8th.
There's talk of an increase fuel duty by 2p, and falling oil prices will be used as reasoning for that. The idea is that you'll barely notice any increases, because prices are low. Of course, you'll notice it, especially when the price at forecourts invariably go up, and up again.
For the past few years, fuel duty has been held, but an unnamed minister has said that the Government are considering an increase. Talking to the Times, they said: "The simplest way to raise cash is to put 2p on petrol. Prices are so low at the moment that people will hardly notice the difference."
Conservative MP Jason McCartney, is not keen on the idea. He said that he'll be meeting with Damian Hinds, the Exchequer Secretary to the Treasury, and urging the Chancellor to scrap these plans.
Talking to the Telegraph, McCartney says: "In my part of Yorkshire, using your car is not a choice, it is a necessity. It is important motorists are not used as a cash cow. We already have the highest motoring tax in the EU and there really is no need for any hike to make our position worse."
He added that "world oil prices could go up again in the next two or three months. We would like a cut in fuel duty but we appreciate the work the Chancellor has done in freezing fuel duty."
Edmund King, the AA president, added: "A 2p hike in fuel duty could well backfire on the government as there is no guarantee that global prices will remain low" and that any increases like this "hits those dependent on their cars particularly the rural poor and disabled", continuing that, "to boost economic recovery, the Chancellor should not be tempted to hit drivers with duty hikes."