Rishi Sunak MUST cut fuel duty to soften pump prices rocketing due to sanctions, MPs warn
RISHI Sunak must cut fuel duty to soften record pump prices which have rocketed due to the war in Ukraine, MPs insist.
Boris Johnson said the impact of sanctions on Brits’ wallets was worth it to defeat “repugnant” Vladimir Putin — but Tories want to see a reprieve for drivers.
It comes after petrol rose 4p a litre last week to hit £1.55 at the weekend — making a gallon more than £7.
Diesel is rising faster — up 6.5p a litre to £1.61, or £7.30 a gallon.
Experts reckon prices could keep going up as global instability and biting sanctions on Russia continue to push up the price of crude oil.
Chancellor Mr Sunak is under pressure to cut fuel duty by 5p in his mini-Budget on March 23.
Campaigners FairFuelUK say the extra £2billion VAT generated by soaring fuel prices over the last year “is more than enough to give drivers some respite”.
The plea was backed by some senior Tories last night.
Craig Mackinlay said: “It is unacceptable that at a time of rapid fuel price inflation the Chancellor cannot give some of the VAT windfall back to the people by means of a fuel duty cut. We need to keep Britain moving.”
Robert Halfon said the repeated rises were “unaffordable for families, white van men and women, hauliers and small businesses”.
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Greg Smith added that “punitive” UK tax levels put prices “disproportionately higher” than many other countries.
He urged a “serious cut in fuel duty”. The RAC back the move.
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It came as Mr Johnson said sanctions against Russia would hit Brits in the pocket amid fears energy bills could spiral up to near £4,000 a year after gas prices soared to an all-time high.
The PM said a proposed boycott of Russian oil and gas was “very much on the table” even if it sent prices higher.
Earlier, US Secretary of State Antony Blinken said Washington was in talks with European nations about turning off the taps to hurt President Putin.
Mr Johnson said: “There are going to be impacts. But it’s the right thing to do.
“We have to consider how we can all move away as fast as possible from dependence, reliance, on Russian hydrocarbons, Russian oil and gas. Everybody is doing that, everybody is on the same journey.”
Former minister Sir Alan Duncan warned of “economic collapse” if supplies are severed too quickly.
He said: “There is this auction of indignation, which all of us totally understand, against anything to do with Russia. So they ban this, ban that and ban everything — but in the end we’re going to end up banning our own supplies.”
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Speculation that governments may slap sanctions on Moscow’s energy supplies sent oil to nearly $140 a barrel yesterday.
The price moderated to $120 when German Chancellor Olaf Scholz indicated he would not back the US idea.
Treasury’s raking in cash while we take hit
By Howard Cox, Founder of FairFuelUK
THE conflict with an unhinged tyrant has become a disaster for the people of Ukraine — and deeply worrying for the democratic West in terms of security and their economies.
For us here in the UK, we are already feeling the first flushes of this economic battering — and it has not been helped by the Government’s exorbitant fuel duty.
Oil prices were already at ridiculous highs and now have reached an astonishing $140 (£107) a barrel, the highest price since the economic crash of 2008.
The knock-on for Britain’s 37million motorists is real with pumps already flogging fuel for 150p per litre, and the rest.
Reports that the price will rocket to 160p and maybe even 170p as the Ukraine crisis hits are easy to believe.
But as the ordinary driver, and those who rely on vehicles for their jobs, take the hit, the Government’s coffers bulge and bulge.
That’s because the higher the price at the pump, the more the Government rakes off in tax.
The Treasury is wallowing in excess of an extra £2BILLION of VAT due to these punishingly high pump prices.
So it is now even more of a matter of urgency that the Government steps in and does something about it. And it’s not hard.
Along with The Sun, I call on the Chancellor to cut Fuel Duty by at least 5p per litre — and do it, now!
Rishi Sunak must also ensure pump prices are fair, honest, and transparent.
As my fellow campaigner, the Harlow MP Robert Halfon, says: “Record fuel prices are just unaffordable and are having a huge impact on inflation.
“The Government needs to look at either reducing VAT on fuel or reducing fuel duty.
“We also need a FairFuelUK PumpWatch monitor to ensure that prices are in line with wholesale oil prices.”
If Boris Johnson and Rishi Sunak really do recognise that reducing the cost of living is their prime focus, then for heaven’s sake they should cut fuel duty now.
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