SNP URGE CON-DEM ACTION ON RISING FUEL PRICES

For immediate release: Tuesday 4th January 2011



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Political Correspondents



MACNEIL WRITES TO CHANCELLOR ON FUEL DUTY RISES


Western Isles MP, Angus MacNeil, has (today) written to Chancellor George Osborne urging him to implement a fuel duty regulator as the cost of petrol and diesel increased across Scotland as VAT went up to 20% at midnight.



Fuel prices in Scotland's remote areas will be among the highest, with fuel now costing £1.45 a litre or more in some parts.



Mr MacNeil said:


“Just when we need action to bring down fuel prices, the Treasury is driving up duty and causing real pain for Scottish motorists and businesses.



“In 1993 the Tories introduced a ‘duty escalator’ of a 3% increase in road fuel duties above inflation in every budget – which Labour actually increased after 1997. It seems as though the Tories haven’t learned their lesson, and are still hell bent on pushing up the cost of living for Scottish households.


"The last time fuel prices were as high as this many people came to me, worried about their commute to work and what it might mean for their jobs, their take-home pay and disposable income – and that was before general VAT was hiked to 20 per cent.



“The SNP have consistently argued for a fuel duty regulator, which would mean when there were spikes in oil prices the duty would go down. Although there was talk of this before the election, and some warm words from Danny Alexander since, we've seen nothing yet, so I’m writing directly to the Chancellor to ensure action is taken. It’s a national scandal that, in an oil rich country like Scotland, we are paying among the highest fuel prices in Europe.”




ENDS



The Regulator would result in an automatic freeze on fuel duty increases if world oil prices rose above levels forecast by the Chancellor and a parallel reduction in duty to match the extra revenue from VAT from higher pump prices.