Julian Smith, Member of Parliament for Skipton and Ripon, has welcomed the plan by the Chancellor to freeze fuel duty until at least May 2015.
George Osborne made the announcement at the Conservative Party Conference yesterday (Monday 30 September 2013).
Julian Smith said:
Driving is a necessity not a luxury for those who live in rural areas like North Yorkshire, so this is a hugely important decision.
I have campaigned hard to make this happen and I am delighted the Government has listened.
Fuel prices are already 13p per litre cheaper than they would have been under the Labour plans we inherited and this intention to freeze fuel duty until 2015 is a further help to hard working people and businesses across North Yorkshire.
Fuel duty is an additional tax that is added to the price of petrol before it is sold. This duty extends to all Hydrocarbon fuels such as petrol, diesel, biodiesel and LPG’s that are sold for use in cars and makes up a significant proportion of the price paid for fuel.
Current typical prices
Petrol – £ 1.32 per litre
- 57.95p of duty
- 47.8p product
- 22.15 VAT
- 5p Retailer/ Delivery
Diesel – £1.37 per litre
- 57.95p of duty
- 51.97p product
- 22.98 VAT
- 5p Retailer/ Delivery
This fuel escalator has forced prices up from one of the lowest in Europe to now one of the most expensive.
When it was first added, fuel prices rose by 3 pence a litre and tax contributed to 72.8% of the total cost.
By 1997 the escalator had added 11.1p to the cost of unleaded petrol and was at 75%.
When the conservatives left office and Labour took over, the escalator increased and 3% was added per litre. This took tax up to 81.5% of the total price of fuel.
