Fuel hikes: price pain for merchants.
Fuel prices to rise when VAT cut ends
Published: 06 August, 2009
UK: Builders’ merchants with transport fleets are facing a rise in the price of petrol of around 5p/litre when the temporary cut in VAT ends on 1 January.
Chancellor Alistair Darling had cut VAT from 17.5% to 15% last November to ease the effects of the recession. The cut, he stated at the time, was temporary and the tax will return to its former level in 2010.
This increase will follow September’s 2p hike on fuel duty.
Fuel prices experienced a dip, following a $10-a-barrel drop in the price of oil. Even though the price of petrol at 103.0p/litre has yet to fall below where it was in June, diesel is now lower at 104.1p.
Oil markets remain volatile and the fall reflects more of a correction in the market than a fundamental change, the Automobile Association said.
Unleaded prices have risen by 0.3p/litre from 102.7p/litre to 103.0p/litre. Diesel prices have fallen by 0.7p/litre, from 104.8p/litre to 104.1/litre.
Northern Ireland recorded the highest price for unleaded at 103.8p/litre. Yorkshire and Humberside once again recorded the lowest price for unleaded at 102p/litre.
London recorded the highest diesel price at 104.7p/litre. The North West has the cheapest diesel at 102.9p/litre.
Prices overseas have also gone up. The UK has the 10th highest unleaded price in Europe and the second highest diesel price, according to data issued by Experian Catalist in co-operation with Arval UK.