Rural residents and poor families to be priced off roads

Traditional petrol station
Low-income families and those living in rural areas will be priced off the road if the tax increases next year include fuel.

This is the stark warning given by RMI Petrol today after the retail association's chairman wrote to chancellor George Osborne demanding that the 4p per litre tax rise on fuel on January 1 and again on August 1 be scrapped.
According to the head of RMI, Brian Madderson, people who live in remote areas will suffer an assault of cutbacks as local retailers such as convenience stores could be forced out of business.

Motorists would also have to travel much further to buy fuel, only adding to the expense.

The AA has calculated that the average two car family will have spent £241.54 more on petrol this summer compared to last year; a massive stretch for those who are hard up and counting the pennies.

"We have never before had tax increases of this magnitude in a single year, " Madderson told The Times.

"Everybody is trying to talk down inflation but they are forgetting that the Government has these tax increases smouldering away in their Red Book."

Already, areas of the country are witnessing a lack of fuel stations as independent retailers struggle to keep up with the rising costs of wholesale fuel.

"With unemployment hitting a 17-year high this month, most retailers worrying about falling demand trends, the UK economy failing to ignite, inflation still climbing and independent forecourts continuing to close the Government needs to address this smouldering tax bomb with the Chancellor's Autumn Statement," Madderson added.

It's not quite like scenes from Mad Max 2 out there yet, but the future is not looking bright for motorists.
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