Hike in fuel duty not ruled out

Hike in fuel duty not ruled out

The Government is being urged not to raise taxes on fuel so motorists can continue to benefit from a drop in prices at the pumps.

Falling oil prices have seen the cost of fuel slashed at forecourts across Britain, allowing drivers to save money on the cost of filling their tanks.

But energy minister Baroness Verma told a debate in the Lords that a fuel duty increase could not be ruled out, as due consideration needs to be given to green issues.

Chancellor George Osborne scrapped the fuel duty escalator in 2011 but warned at the time that it may be re-introduced if oil fell below 75 US dollars a barrel. It is now around the 50 US dollars mark.

The mechanism meant fuel taxes went up by 1p a litre above inflation.

Baroness Verma told Conservative peer Lord Howell of Guildford, who wants the Government to resist any move to raise taxes and green levies, that ministers consider the impact of all polices, but warned that plans to move towards a cleaner environment might have a further impact.

Copyright Press Association 2015