UK Government push fuel prices higher

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2009-12-15

SNP MP for Na h-Elieanan Iar and Transport spokesperson, Angus MacNeil, has hit out at the UK Government after it emerged Treasury tax hikes would push the costs of fuel up across Scotland.

According to the Consumer Price Index (CPI), average petrol prices across the UK rose by 2.9p to 108.3p a litre in November – but in parts of rural Scotland, the price has risen to 115p per litre.

In Mr MacNeil's Western Isles constituency, the cost has reached 124p per litre.  

Commenting, Mr MacNeil said:

"The soaring prices we are seeing at the pumps now are just a glimpse of what is to come next year. In addition to rising inflation, 2010 will see increased VAT and the UK Government’s absurd fuel duty escalator which will push prices through the roof.


"Treasury Ministers in London fail to understand that in rural areas the operation of a car is a necessity rather than a choice. They must reconsider their potential disastrous fuel duty escalator.

"At present, taxes account for just over 70% of every pound spent at the pumps. In the Highlands and Islands that price is further distorted by transportation costs and the price of fuel influences the cost of every commodity and service brought to the area. "Instead of pushing prices up with further tax hikes, the UK Government should be cancelling their fuel duty escalator and looking at measures which will stabilise fuel prices such as the SNP’s fuel duty regulator."

Mr MacNeil continued:

"Rising fuel prices add yet more insult to the injury of Labour’s Pre-Budget Report.

"An oil rich nation such as Scotland should be reaping the benefits from our natural resources – not watching as North Sea revenues flow into a black hole in Treasury coffers while the Scottish budget is slashed.

"Westminster is holding Scotland back. We need the full fiscal powers of a normal, independent nation so we can set fair taxes that do not penalise rural motorists."