Roads into London and Cardiff are expected to be jammed with lorry convoys as part of a protest at the soaring cost of fuel.
Average prices have risen during the past month by their highest margin this century to 114.2 pence per litre of petrol and 126.7 pence per litre of diesel, the AA says.
In January, the national average petrol price was 104.3 pence per litre and diesel was 109.2 pence per litre.
The rise has mirrored the cost of oil as it recently breached $130 a barrel.
The government has staved off one planned increase in fuel duty, but a 2 pence rise is scheduled to go ahead in the autumn, affecting all motorists.
The government blames the rising cost of oil for forcing up prices on garage forecourts, but drivers say the Treasury should reduce levies.
Do you think the government, which was forced into a U-turn over the 10 pence tax rate last month, should be forced into another by reducing fuel levies to help motorists and the haulage industry?
If so, where else could it get its money?
And how would such a tactic fit with its so-called green credentials?

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28 comments so far
If we pay the same as the Americans, and the Chinese, then maybe that would be fair. As it is, Gordon Brown resembles a Highwayman more than a generous and listening leader of a so-called civilised society.
- Posted by Neil BrownWe have great problems in this country, and all he does is insist that we can solve the worlds ills. If we only account for 0.008% of the world’s surface cover, why do we have to live withy many in poverty while the rich parade their wares. We in the UK need a tolerant and fair ruling government, instead of this charade mockery of a communist party. The pigs with snouts deeply embedded in the troughs were referred to many years ago in a book by George Orwell entitled ‘Animal Farm’. Well, Napoleon, when will the people get what they put you there for. If the kitchen is getting a bit hot, it is because you burnt all the cakes.
Tax is levied on oil at a percentage of the price, so the higher the price, the more is skimmed off by the government, which is enjoying increased revenue in direct proportion to the increased price of oil. Oil products are also taxed twice, first on the crude oil produced in the UK (Petroleum Revenue Tax) and again on the refined products sold at the pumps(VAT).
I haven’t done the sums myself but recently read a fairly convincing newspaper article which stated that the extra PRT raised by the recent increase in the price of crude oil was sufficient to reduce the tax taken at the pumps by 12p per litre and leave the government in a cash-neutral position (ie it takes more with one hand and give it back with the other, so its cash position is the same as it originally budgeted for).
So, the government could reduce the amount paid for petrol and diesel by approx 12p per litre at no cost to itself and the question of “Where else would it get its money?” is irrelevant.
It may well reduce the price at the pumps, on the cynical pretext that it “is doing everything it can to help hard working families”, but it is not the correct thing to do.
The price of oil is currently being chased up by speculation, but will eventually settle at its true value and manipulating the market (as with subsidising Northern Rock and the plan to spend taxpayers’ money on buying up blocks of unwanted buy-to-let flats) is simply postponing the inevitable result for short-term political gain.
If people want to reduce the cost of motoring they should use less fuel. If they want to pay less tax they should vote for a less greedy and wasteful government.
- Posted by Mike TThe governement is disinsentivised to do anything given the tax take from oil. As Mike T points out, the higher oil goes, the more revenue that is automatically collected. For a seriously cash strapped government this is simply financial manna from heaven.
Remember, if Gordon’s fnancial ineptitude is not paid for
- Posted by Nick Rileywith one form of tax, it will be paid for through some other tax.
The government can do little about the high price of oil, and consequently the price of petrol. Cutting taxes will just give a brief reprieve.
Motorists abhor a vacuum.
- Posted by JamesThe Government Can do something about it…. They should turn from this suicidal alignment with the Dollar and fully align with our European neighbours with an adjusted value of sterling to enter the Euro mechanism.
- Posted by Neil BrownOil is priced in Dollars, and the weakness of the dollar aligned to Sterling, is crippling our economy. Inflation is just a symptom of this. If GB uses imported electricals, white goods furnishings, cars etc to offset his inflation figure to attain a ridiculous 3% or less, will he then re-align the wage and salary claims next year when those figures are readjusted for the devalued price of sterling? It is highly likely that unadjusted figures before the end of this year will exceed double figures by no mean sum, so where they get their long-term figures is anyones guess. Perhaps they should forecast the weather. There is more chance they will get it right. We have suffered this fools anomaly of accounting for over ten years now, and like sheep, the BoE does what it is told. It cannot be blamed for the bad instructions. Those instructions need amending…. Fast. Has nobody there ever heard of ‘management from below’?
Currently the Chancellor takes a percentage tax on the price per litre of fuel. This obviously means that each time fuel prices rise, for whatever reason, tax payments increase. If we paid a fixed amount of tax instead of a percentage, the chancellor could forego all the tax increases on fuel from the beginning of this year.
- Posted by Eric J. UsherMotorists in Britain are amongst the most heavily taxed groups in the world. We pay vehicle tax on a new vehicle, VAT is then added, we then pay road tax (which was initially brought in to maintain our roads, but since 1962 is but another mechanism by which the exchequer can raise revenue; and on top of that we pay tax on the fuel we put into our vehicles.
- Posted by William HavardGovernments - past and present - have seen the motorist as an easy target, but this cannot continue.
The Government put the mechanisms in place to tax us, and, by their whim, have the tools by which to relax these measures.
Governments stand or fall on the decisions they make - let us hope that common sense prevails and we see a fall in these crippling taxes on bus companies, haulers and the common man.
This government has been killing off our haulage industry, and consequenty damaging the competitiveness of our industry, for years, with the high duties on diesel. We’re being taxed more than at any time in our history and what has the country got to show for it? Shame on all those who voted for this bunch of incompetent charlatans. Hold your hands up and repeat after me: “Labour couldn’t organise a whelk stall - I pledge never to vote Labour again” (and repeat until you mean it).
- Posted by MatthewWhy do we tolerate this and every other set of greedy self indulging set of government representatives when we know they truly DO NOT reflect the country they claim to or the long suffering of this once great country.Fuel is only a small part of the reason that we are losing the young families to other fairer nations.Thugs who cannot be reprimanded for fear of having to complete endless paper work and illegal immigrants that fill our prisons and stop us commiting our home grown criminals to prison.No fuel prices can be tolerated but Not every other injustice inflicted on this ex leading country. Disgusted doesn’t come close.
- Posted by margaret dunneThe government wont do anything, they are there to take as much money from us so they can get a £4000 tap fitted to their free constituency houses and then claim it back as an ‘Expense’. They are there to sponge so now they are getting millions more a week from petrol tax they will be thinking about conservatories and double garages.
But on a serious note, there is no reason why the government cant slash 30p off fuel prices. Thats why we ‘elect’ them so they can figure out better ways of using the moeny they have, instead of forcing us to pay more money for them to waste on health and safety training.
just too add something that Matthew said, I think saying Labour couldnt organise a piss up in a brewery would be much better way of emphasising their incompetence! They have made this country a sespit of hoodies and bingers and coffee shops. Get them out, get Boris Johnson in as PM, at least he’ll make us laugh.
- Posted by Dave WI think the government revenues are not benefiting that much from increase oil prices and taxes due to the fact that oil production from the North Sea peaked in 1999 and since 2006 the UK has actually been a net importer. The UK’s oil production is decreasing at around 10% a year. So this is going to put a massive hole in the country’s revenue. If anything the tax on fuels will rise due to this situation.
- Posted by Mark DonaldsonWhat needs to be done is for all people to come into the true understnading of the total lifestyle change(s) which will come upon all of us; that means 19th century licing, possibly even 18th century. No other way out; alternatives supply less than 1% of petroleum replacement.
- Posted by s. chisholmNothing can or should be done.
1) There is a moral hazard here, to use a fashionable phrase. The only hauliers who are in trouble are, a priori, the ones who tried to undercut their competitors by offering contracts whose price did not depend on energy costs. To bale them out at the expense of both the taxpayer and the more responsible hauliers (generally the bigger firms) would merely reward their bad behaviour.
If there weren’t oversupply in the part of the haulage market served by the smaller companies, then they wouldn’t feel the need for such desperate measures. One feels sorry for them of course, but the taxpayer should never be asked to subsidise the oversupply of anything.
2) As the hauliers spokesmen themselves have been pointing out on TV all day, if the motted duty cut is not funded by consumers through the tax system, it will be funded by them through higher prices in the shops. Even a haulier should be smart enough to figure out that the second of these is the more efficient mechanism, and the one which during a slowdown will do less damage to the economy overall.
- Posted by Ian KemmishThe oil companies are having a bonanza, they’ve recorded record profits in the first quarter, that means the government has done the same as their percentage take remains unaltered. To date what has the government done to encourage freight haulage by rail? What public transport improvements have been made? How interested is this government in promoting green solutions?
- Posted by b. brindleWith oil prices so high we are led to believe there is little Gordon Brown can do to control prices at the pump. Why on earth do we believe this, approx £1.00 in ever litre is tax straight in to the exchequer. Brown and Labour do have a solution they could cut fuel tax until production increases as an emergency measure. A reduction of 10% in duty would give the motorist and the truckers a little help in difficult times. Once oil prices get back to somewhere near $100 a barrel in the next 18 months he can start to increase the tax again. At what point will her and Labour understand that the oil price isn\’t the issue here it’s the tax at the pumps that is driving the economy in to a state of panic. I drive over 60,000 miles a year for my job and my disposable income has evaporated so I will be putting little or nothing extra in to the high street. If he gave a little at the pumps he might see a return plus a little more on the high street, reducing consumer fear and widespread panic. That said when have labour ever listened, this protest is about keeping tax at its current level not cutting it so its futile to say the least. Well Gordon the choice is yours make major changes or watch the real workers of the UK shut up shop or leave for pastures new. Barring the Swiss we pay more per litre than anyone so it can be done Spain pay 30% less!!!
- Posted by MattTaxes can’t be avoided except by drug dealers and other criminals who don’t pay income tax. We are in danger from global warming, air pollution and traffic congestion. Some of this is caused by trucks! Truckers can pass their increased costs back onto consumers. What is the problem? If they blockade refineries or other essential supplies the government should not hesitate to bring in the army with instructions to use whatever force is needed. The troublemakers should be imprisoned right away and charged with treason.
- Posted by BrianMy company is a mail order company,we have in the past absorbed the fuel surcharges from our couriers but these have now reached the point that we must increase our carriage charges. This fuel tax is nothing more than another Brown/Darling stealth tax…the tax on booze is a definite value,the tax on cigarettes is a definite value but the tax on fuel is a percentage,the higher the fuel cost,the more the tax take…I am sure Gordon Brown rejoices with every increase in the crude price….the solution is obvious make the duty on fuel a definite amount,based on the tax take prior to these latest extreme increases and then Brown could not be accused of benefiting from price hikes….he will do nothing of course this is his way of taking back the 10p tax abolition costs and he seems to find many ways to waste the monies he collects. If I were the lorry drivers I WOULD PARK THEIR LORRIES ON EVERY MAJOR JUNCTION IN THE COUNTRYHE MIGHT GET IT AND DO SOMETHING ABOUT IT.
- Posted by Dave ElderfieldIf we were in France we would all be out on National Strike and the government would listen….THIS MAYBE THE END OF GORDON BROWN<GOOD RIDDANCE.
Its apparent that the government has been enjoying an unprecedented increase in tax due to the oil increases. The chancellor can reduce fuel tax by 25p for haulage firms and 12p for private motorists. To offset the tax loss he can eliminate the quangos saving £53 billion. Job done.
- Posted by Denis Moonthe truckers are doing a good job
- Posted by brian goudieit’s time the motorist took part in the protest
labour are doing nothing but scewing us
with fuel tax and green tax
The Government must make some short term concessions.
- Posted by Alan SouthamptonLonger term fuel prices need to rise to reduce carbon emissions. People might consider driving less and / or more slowly?
Of primary concern is the unneccessary increase in car tax for older vehicles - this is added madness and should be withdrawn now!
Its time the goverment took note of the needs of rural people who need their own transport it is not a luxurey but a need for every day life. With the loss of local Post Offices and other aminates - fuel prices increas is another nail in the coffin for the low waged and those on their pension. Lets face it the goverment should remember that the next election is coming closer…
- Posted by Dilys MyfanwyFor God’s sake jump Gordon - while you still have height!
- Posted by Steve SuckleyOn a more serious note: Forget this and any other issue. Labour has left this country in such a mess - it has no intention of addressing issues or winning another election - it will just be glad for someone else to pick up the pieces. Doesn’t history have a habit of repeating itself!
- Posted by Steve SuckleyThis government would rather subsidise asylum seekers and NHS tourists to the tune of billions than do anything about it. Likewise welfare spending includes billions that goes to those who are not eligible and are on the fiddle. Trouble is these all fall into the ‘too hard’ category whilst motorists are an easy prey. Get rid of the nearly 1 million ‘non jobs’ created by this government in the public sector and you will save several billion more. They could then cut the fuel tax which is the REAL reason prices are so high.
- Posted by peter savageREDUCE THE LEVEL OF TAX.
Due to the rising price of fuel, this greedy and pernicious government has raked in an EXTRA £4+ Billion in tax.
That is OUR money. Give it back, please, or get out of office.
- Posted by John BallHit the speculators where it hurts. Reducing the maximum speeds on all dual carriageways including motorways to 100kph (60mph)would reduce consumption and leave the speculators holding a surplus!?
- Posted by newbynormObviously most people whom have left there thoughts on this page simply dont get it. We use 4 barrels of oil for every 1 barrel we find. most of the worlds largest and most prolific oil fields are in permanent decline, cantarell in mexico declining at 7% a year, burgen in kuwait a similair amount, north sea 10% a year, russia has peaked now and the one we really rely on is ghawar in suaida arabia discovered more than half a century ago, also in terminal decline, we have netered the last oil shock, it will take a few more years for most of you to wake up to the fact, but wake up you will do!
Even our debt based money system is destined to fail in the near future, since it is exnoarably linked to infinite growth on a finite planet.
That should say it all, infinate grwoth on a finite Planet.
Just at least try and think about it wont you?
just google peak oil and get reading.
- Posted by SmiffyIt seems that Sarkozy could topple Brown if he calls for a european cap on fuel taxes. When Taiwan complain at 1.1 Dollars and the Americans pay 60cents per litre, we all know that throughout Europe prices are a lot lower then clearly even the Shell top man acknowledges that Taxation is the problem. Other countries survive capably. When the oil companies are all declaring megabuck profits, bear in mind that the UK treasury gets more than double that, with no costs for production or exploration. Where is all that money? why should we subsidise the world? Labour listens well enough, as does GB. He fails to speak and his actions condemn him. Is there really a difference between his style of government and R.Mugabe? if so, please explain where, because neither of them are elected leaders.
We desperately need a general election, and a new constitution throughout. Tinkering at the edges by old men has failed us. New blood needs to be filtered, and learn through the system. It cannot solve all the problems, but we need a massive change to sort the country to become proud British citizens again. If all our so-called wealth is drained into third-world arguments instigated by some US crank, and previous leaders of our own country, then why does GB not call a stop. Withdraw all troops from foreign missions that gain nothing for this Green and Pleasant land. (which is also why he cannot use troops to quell internal uprisings Brian.
Yes we also have other problems, but the core has gone awry, and the only way to correct that is by radical reworkings. However, the pain has to be felt by government now. The people have suffered enough.
OK does anyone else want to borrow my soap box?
- Posted by Neil Brown