Hosie makes case for fuel duty regulator

SNP Westminster Treasury spokesperson, Stewart Hosie MP, has today made the case for the introduction of a fuel duty regulator to protect motorist and businesses, as the House of Commons Finance Bill Committee considered amendments.

The amendment was discussed by the Finance Bill Committee this morning, and Mr Hosie has undertaken to bring an SNP proposal to the full House at report stage.

The proposal would mean that higher oil prices trigger lower fuel duties, which make up 60 per cent of the price of petrol and diesel.

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. The proposal is backed by the Road Haulage Association.

Mr Hosie said:

"Everyone agrees action is needed to bring fuel prices under control, and our proposal would provide that essential relief.

"After the pasting Labour got in the English and Welsh elections, I think even Gordon Brown realises the anger that exists over sky-high fuel prices.

"Of course, it was Gordon Brown's fuel duty escalator pumped up petrol prices, but our road fuel regulator will help keep them down. It would make automatic a decision on freezing duties that is currently left to the Chancellor's whim, and would help keep pump prices lower.

"Every time oil prices go up we pay through the nose. However the Treasury rakes in the loot not just from corporation tax but also from increased VAT on the rising price at the pumps.

"This proposal would see any extra cash raised from VAT on higher pump prices would go straight back into an equivalent cut in fuel duty, helping motorists living in remote rural communities and the hard pressed haulage industry.

"Ironically Scotland as one of world's largest oil producers is hit hardest as our haulage industry is most vulnerable to high pump prices.

"They shouldn't have to wait on the whim of the Chancellor for a freeze on duty rates. Long suffering motorists and hard-pressed hauliers should have some degree of protection from rising oil prices – and that is what this road fuel regulator provides."

In support of the Fuel Price Regulator amendment, Phil Flanders of the Road Haulage Association said:

"The Road Haulage Association supports the SNP's amendment to the finance bill for a "Fuel Price Regulator".

"This will bring some stability to a hard pressed haulage industry and its customers who, in many cases are resisting the constant increases that hauliers need to cover their costs.

"The Treasury, in recent weeks have emphasised the importance of stability and that argument is very relevant to the haulage industry's largest cost."