Brown Urged To Cut Duty As Oil Prices Fall
source: http://news.sky.com/skynews/Home/Business/Fuel-Prices-Brown-Urged-To-Cut-Duty-As-Oil-Prices-...
-
-
- TravG73
- added this
Petrol retailers are calling for a freeze on fuel duty to help push down prices at the pump for motorists.
It costs an average of of £5.70 extra to refill a 50-litre vehicle compared to this time last year.
And that is after a fall of 9% in prices in the last three months as oil prices plummet in the global financial turmoil.
Ray Holloway, director of the Petrol Retailers Association (PRA), said: "Gordon Brown always has the ability to reduce fuel prices through a fuel tax reduction, but avoids it.
"Prices for crude oil and forecourt fuel are obviously linked but they do not move in tandem.
"Therefore they do not automatically move up or down at the same time."
Fuel prices reached a record high of 119.7p per litre on July 17, this year.
Tesco supermarket lowered its prices for unleaded and diesel by 3p across its 430 UK forecourts this week, following a 1p cut by rivals Asda.
The latest fall in the price of oil came as stock markets plunged around the world on recession fears, which would weaken the demand for oil.
Crude oil was trading below 80 dollars a barrel for the first time in a year and energy-facings stocks are down with oil giant BP 8% lower and rival shell 9% down.
Changes in oil prices typically take between six and eight weeks to filter down to the forecourts and motorists, according to the PRA.
It costs an average of of £5.70 extra to refill a 50-litre vehicle compared to this time last year.
And that is after a fall of 9% in prices in the last three months as oil prices plummet in the global financial turmoil.
Ray Holloway, director of the Petrol Retailers Association (PRA), said: "Gordon Brown always has the ability to reduce fuel prices through a fuel tax reduction, but avoids it.
"Prices for crude oil and forecourt fuel are obviously linked but they do not move in tandem.
"Therefore they do not automatically move up or down at the same time."
Fuel prices reached a record high of 119.7p per litre on July 17, this year.
Tesco supermarket lowered its prices for unleaded and diesel by 3p across its 430 UK forecourts this week, following a 1p cut by rivals Asda.
The latest fall in the price of oil came as stock markets plunged around the world on recession fears, which would weaken the demand for oil.
Crude oil was trading below 80 dollars a barrel for the first time in a year and energy-facings stocks are down with oil giant BP 8% lower and rival shell 9% down.
Changes in oil prices typically take between six and eight weeks to filter down to the forecourts and motorists, according to the PRA.
