It's Time for a Fuel Price Regulator

Aberdeen North MSP Brian Adam is seeking cross-party Parliamentary support for a fuel price regulator to protect hauliers, motorists and road users from the impact at the pumps of high fuel taxes and higher international oil prices.

The motion supports the Road Haulage Association's campaign to introduce a fuel price regulator which would create a system where higher oil prices trigger lower fuel duties. Fuel duties currently make up over 60 per cent of the price of petrol and diesel and the regulator would result in an automatic freeze on fuel duty increases and a reduction in duty to match any increases in VAT.

Commenting on the proposal Mr Adam said:

"It was Gordon Brown's fuel duty escalator that pumped up petrol prices and the higher oil price only makes it worse.  It is also making it more difficult for many hauliers to carry out their business as profitable companies.

"A fuel price regulator will help keep the costs down, with the benefit felt by motorists and road hauliers in the North East and across Scotland.

"Motorists and the road haulage industry have had a raw deal in recent years. Every time oil prices go up we pay through the nose. However Gordon Brown and Alistair Darling rake in the loot not just from corporation tax but also from increased VAT on the rising price at the pumps.

"Ironically Scotland, as the EU's largest oil producer, is hit hardest as our haulage industry is most vulnerable to high pump prices.

"They shouldn't have to wait on the whim of Downing Street for a degree of protection from higher fuel costs. Long suffering motorists and hard-pressed hauliers should have some degree of protection from rising oil prices.

"This proposal would see a double protection for motorists and the road haulage industry. First, higher oil prices would trigger an automatic freeze in fuel duty rates, and second, any extra cash raised from VAT would go straight back into an equivalent cut in fuel duty. And the Chancellor would be no worse off than he forecast in his pre-budget statement."

ENDS

Notes

The motion reads:

Road Hauliers and a Fuel Price Regulator

That the Parliament supports the Road Haulage Association's campaign to introduce a fuel price regulator, notes the burdensome cost of fuel on motorists and the road haulage industry which effects Scotland; notes that Scotland is one of the world's largest oil producers with oil at record prices; further highlights the negative effect of soaring fuel prices on competitiveness; urges the UK Government to close the gap between fuel duties charged in the UK and the rest of Europe; considers that the revenues from fuel duties and VAT, accounting for 60 per cent of the price of petrol and diesel, pose an unfair burden on industry and consumers; and calls on the UK government to introduce a fuel price regulator which would ensure the smooth modulation of VAT on fuel to reflect changes in the price of oil thus protecting hauliers and consumers.

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