AA calls for government to scrap fuel duty rise

The AA has called on the government to scrap the planned fuel duty rise set to come in on 1 October.

The motoring organisation claims that a weak pound and rising oil costs mean that drivers could be hit by record high forecourt prices if the duty increase goes ahead.
"The bottom line is that petrol and diesel prices are around 9p to 10p more expensive than this time last year, providing the Government with a VAT windfall of at least 1p a litre," said AA president Edmund King. "For that reason, the duty hike could be shelved to help economic recovery, ahead of the 2.5% VAT increase next year."

The AA points towards a recent $6 leap in the price of a barrel of oil over the last month, coupled with a weakening pound as reasons why motorists could be facing prices at or above May's record 121.61p a litre rate.

The average cost of a litre of petrol actually fell over the last month, but is still up by nearly 10p in comparison to this time last year, from 106.54p to 115.25p. Diesel prices also fell from August to September, from 119.15p to 118.02p, but are up by almost 11p from the same time last year.

"Pump prices remain precarious with the possibility of a new upswing, and it will be bad timing if the 1p-a-litre fuel duty increase in October coincides with another £1 on the cost of a tank of petrol," says Edmund King,
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