Petrol retailers 'should drop prices', says Plymouth MP
PETROL retailers should cut their prices after Chancellor George Osborne scrapped August's planned 3p rise in fuel duty according to a Plymouth MP.
Hailing the freeze by the Treasury as "sensible" Oliver Colvile said sellers should now respond by making reductions at the pumps.
The £500 million boost to motorists can be paid as a result of departmental savings across Whitehall, the Treasury said.
Announcing the measure to cheers from Tory benches in the Commons, Mr Osborne said fuel duty would now be 10p a litre lower than under the plans inherited from Labour.
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"We are on the side of working families and businesses and this will fuel our recovery at this very difficult economic time for the world", he said.
Labour had urged Mr Osborne to scrap the rise, with shadow chancellor Ed Balls calling for the Government to use the £500 million underspend from the Olympics to fund the move.
But Treasury sources insisted Mr Osborne's announcement had been under consideration for some time.
The Chancellor told the Commons: "The one-off cost of this change will be fully paid for by the larger-than-forecast savings in departmental budgets."
He said it was a sign the Government was "doing everything we can in very, very difficult economic circumstances for the world".
Tory MP for Plymouth Sutton and Devonport Oliver Colvile said: "This is a sensible thing to do.
"What the Government want to see happen is to see fuel sellers taking a much more pragmatic view and cut their margins too."
The August rise has been deferred until January next year, at a one-off cost to the Exchequer of £550 million, Treasury sources said.
The move was first discussed at a meeting of the 'quad' – Prime Minister David Cameron, Deputy Prime Minister Nick Clegg, Mr Osborne and Treasury Chief Secretary Danny Alexander – on May 28. Sources insisted the announcement was timed for today because it was the last Treasury questions session in the Commons before MPs begin their summer recess next month.
Labour MP for Plymouth Moor View Alison Seabeck said: "We have been pressing for some time for the Chancellor to take some action which would result in a reduction in the price of fuel.
"The Chancellor has had a rethink which we welcome."
But in the light of other U-turns, Ms Seabeck added: "We have to ask why he's getting himself in this mess.
"It just adds to the chaos and a sense we have got a government unclear of the direction they are taking the country."
Comments
by fancyabrew
Wednesday, June 27 2012, 1:56PM
“prices have been going down cheapest I've seen is £1.31 for diesel. Home fuel oil has come down from 65p/l in April to 49p/l I paid on Monday still more than the 18p/l you would have paid 8 years ago”
by Peter20113
Wednesday, June 27 2012, 1:39PM
“When I feel under the weather I do like to read what Oliver has to say”
by LordorNothing
Wednesday, June 27 2012, 1:09PM
“sainsburys marsh mills, 1:26.9pl”
by m_dalston
Wednesday, June 27 2012, 9:44AM
“10thattempt - don't talk to me about "poor retailers". The likes of Shell & Tesco make billions in profit each year! The price of a barrel of crude has come down from $106 at the end of May to $91 now - have you seen a similar 15% drop at the pumps the last 4 weeks? Not to say that 2 years ago a barrel topped $150 - and yet we are still being fleeced by the energy companies & fuel retailers for the price we pay!”
by 10thattempt
Wednesday, June 27 2012, 8:24AM
“Oliver Colville is increasingly looking like a publicity seeking idiot. Anything in the news and he's in there providing soundbites.
A proposed RISE has been cancelled - Osborne has not dropped the duty, so why should retailers cut the cost, especially as many only make 1-2p/litre at best.
Then it is "City Centre Police station busy Shock Horror" - he blames drugs and drink. I blame the criminals.
Yesterday he was harping on about how people doing over 100 mph on the A38 should be "hammered", on the same day when an Army vehicle (noted for driving at about 50) managed to overturn, and 4 other vehicles hit each other. Why 100 mph Oliver? Why not 93.2 or 103.5? Are you saying that 99.5 mph is OK?”