Government urged to tackle high fuel prices by petrol retailers

Petrol retailers warn that 5p per litre could be added to pump prices

The Prime Minister has received a letter from the RMI Independent Petrol Retailers Association, asking him to set up a working party “urgently” to tackle the issue of soaring petrol prices.

RMI Petrol represents two-thirds of the country’s 9,000 petrol forecourt sites. The letter, copied to senior Coalition figures such as Chancellor George Osborne, warns that looming fuel duty and VAT increases will add 5p a litre to pump prices, and maybe more if the price of crude oil rises as predicted.

Brian Madderson, the chairman of RMI Petrol, reminded the Government about two important pre-election pledges: the Conservative proposal to consult on a “fuel price stabiliser mechanism” whereby global increases in crude oil would be offset by duty reductions and vice versa; and, secondly, the Liberal Democrat promise to look at measures to help with fuel costs in remote rural areas.

Countryside communities are the hardest hit by fuel price hikes, RMI Petrol said, as they cannot always access public transport to avoid the costs of driving.

If no consensus can be reached in the short term, Mr Madderson urged the Government to postpone the 1p per litre duty increase due to take effect on October 1st.

Brian Madderson continued, “Both the Coalition parties had separately pledged to do something about the price of fuel. I’m challenging them and saying, ‘Look, you made those pre-election manifesto pledges, where are they when we are all going to need them in the next six months?’”

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