Putting the brakes on rising fuel costs

November 6, 2014 5:10 PM
Originally published by UK Liberal Democrats

Liberal Democrat Chief Secretary to the Treasury Danny Alexander is calling for fuel companies to pass cuts in oil prices onto drivers.

Oil has fallen by almost 25 per cent, from around £72 a barrel in June, to around £52.

Comparatively petrol prices have dropped by only 6 per cent - from 131.7p per litre in the summer to 124.22p now.

Today Danny urged petrol and diesel suppliers to cut prices further following this recent decline.

fuel-duty.jpg

Danny said:

"Especially in the current economic circumstances people would rightly be angry if they feel that pump prices don't fall as much as they should on the back of falling oil prices.

"I believe it's called the 'Rocket and Feather' effect.

"The public have a suspicion that when the price of oil rises, pump prices go up like a rocket. But when the price of oil falls, pump prices drift down like a feather."

Liberal Democrats in government inherited Labour plans to make fuel taxes increase by inflation, plus 1p year on year throughout this Parliament. This was their so called 'fuel duty escalator'.

The Liberal Democrats in government have cut fuel duty by 1p in 2011, scrapped that escalator and scrapped the inflation rises.

That's £22.5bn of support for motorists and businesses and means petrol and diesel will be 20p per litre cheaper by the end of this Parliament compared to Labour's plans.