A debate by MPs over the price of fuel will involve a number of ministers asking that the government works harder to make sure that costs are kept under control amid public outcry. An e-petition demanding that the price at the pumps is cut has been signed by around 100,000 people.
George Osborne has already scrapped the fuel tax escalator, and in March reduced the duty on fuel by 1p. However, ministers want guarantees that future planned tax hikes on fuel are reassessed. They are also calling for guarantees that when oil prices fall, any savings are passed back to motorists.
Tory MP Robert Halfon explained that current fuel prices were damaging small and medium businesses, and also meant that some people were handing over around 10 per cent of their pay packet in order to continue driving. He is asking fellow ministers to discuss how fuel tax rates are affecting economic growth and the country’s level of unemployment.
The Treasury has said that at times when the cost of fuel is high there will be a cap, meaning that they cannot rise higher than the price of inflation. At these times, the oil companies will be responsible of paying for any short falls through taxation.
Campaign for Better Transport spokesman, Richard Hebditch, said one of the main problems was that Britons remained too reliant on their cars, and that more investment was needed in making that public transport systems better. He added that it was economically dangerous to still be so reliant on foreign oil supplies.