This week the chancellor has written to the Competition and Markets Authority (CMA) expressing confidence that it will not “hesitate to use any powers at its disposal to act strongly against any unacceptable conduct, such as profiteering or exploitation” by fuel companies following the surge in the price of oil because of the war in Iran.
Rachel Reeves, and the energy secretary Ed Miliband, also planned to meet with fuel company bosses and the Petrol Retailers Association as government ordered a “crackdown on pump prices.”
However, whilst there has been a sharp hike in both oil and forecourt prices over the past week much of what drivers pay at the pumps is dictated by ministers through taxation.
Steve Gooding, director of the RAC Foundation, said:
“The fact that pump prices are routinely displayed down to a tenth of a penny illustrates just how sensitive tens of millions of motorists, not to mention around five million van drivers, are to the cost of fuel.
“Before throwing stones at petrol and diesel retailers ministers might want to remember that more than half of what’s paid at the pumps goes to the Exchequer, a mixture of fuel duty and VAT. That is why calls to postpone the planned fuel duty rise in September carry so much weight.
“If the government seriously wanted to help drivers then it could lead by example and cut tax rather than simply pointing the finger at those selling fuel.”
ENDS
Contacts:
Philip Gomm – Head of External Communications – RAC Foundation
[email protected] | 07711 776448
Notes to editors:
The RAC Foundation is a transport policy and research organisation which explores the economic, mobility, safety and environmental issues relating to roads and their users.
The Foundation publishes independent and authoritative research with which it promotes informed debate and advocates policy in the interest of the responsible motorist. For more information visit www.racfoundation.org