13 June 2008
We received a petition asking:
"We the undersigned petition the Prime Minister to Review fuel duty."
Details of Petition:
"In the light of ever increasing wholesale fuel prices, the detrimental effect of the dollar/ pound exchange rate and the increasing government revenue, the duty on fuel should now be reviewed."
Read the Government's response
Road transport underpins the way of life in the UK, remains important for essential journeys for businesses and families and, used efficiently, is a key component of the economy.
The retail price of fuel at the pump is of course ultimately a matter for retailers and their suppliers, and fuel duty is just one of a range of factors which determine the price paid by the motorist. But the Government is of course sympathetic toward those who are faced with extra costs for essential journeys, as a result of factors such as the high world oil prices.
The Chancellor of the Exchequer continues to work with G7, G8 and G20 partners to address inefficiencies in the international oil market, by building on the G8 energy initiatives to improve supply, investment, data transparency, improved producer-consumer dialogue, efficiency and minimise the adverse impact on sectors and individuals.
It is the Government's policy that fuel duty rates should rise each year at least in line with inflation, as the UK seeks to reduce polluting emissions and fund public services. In order to underline this commitment the Chancellor's 2008 Budget announced fuel duty rates through to 2010-11. However, the Chancellor recognised the impact that high fuel prices - caused by supply and demand in the global oil market - were having on business and families. He therefore announced that the planned 2 pence per litre fuel duty increase scheduled for 1 April would be deferred to 1 October, and the Chancellor will consider the case for this increase again at this time - taking into account a number of economic and social factors.
The rate of fuel duty remains a fixed amount - 50.35 pence per litre - which has not varied as the retail price of fuel has increased.