Petrol tax to rise

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Petrol tax 'to rise'

A 1.28p a litre rise in petrol tax will be imposed in October following a freeze because of the Iraq war, it is reported. In his Budget in April, Chancellor Gordon Brown delayed the planned rise because of the "high and volatile level of oil prices" caused by the conflict.

A Treasury spokeswoman told the Reuters news agency on Friday that the government had yet to announce whether the rise would go ahead.

But the Daily Telegraph said the Treasury had confirmed the rise would go ahead from 1 October, as the international situation had improved.

The paper quoted the shadow chancellor Michael Howard as calling the rise "another stealth tax" aimed at bringing a budget deficit under control.

However, analysts said the autumn tax hike would not affect motorists too badly, as petrol prices had dropped as Iraq began to recover its production.

Petrol in the UK currently costs an average of 76.2p for a litre of unleaded, according to the AA.

The motoring organisation said it was disappointed the rise was going ahead, as UK motorists already suffer from high taxes.

Duty makes up about three-quarters of the price at the pump for UK motorists.

Reply to
Dudley
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So the plan is to wait for a fall in the oil price and match it with a rise in tax, hoping nobody will notice. Then when the oil price rises again, the tax stays and the government blames the crude oil market for making our fuel so expensive.

It's not long since the truckers were threatening to blockade our cities. In my view a 5p rise (as reported by some news services) will be too greedy and will result in another conflict.

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Reply to
DP

Thats it.... I've had enough...... I'm walking from now on !!

Reply to
marky

It was 5p per gallon, not litre. i.e. pick a big number to make a good headline.

Reply to
Scott Williamson

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