Motorists win 1p fuel duty cut to ease pain of rising oil prices

first_img whatsapp KCS-content Wednesday 23 March 2011 9:54 pm GEORGE Osborne sweetened his Budget for consumers with a surprise 1p per litre fuel duty cut, effective from 6pm yesterday. The tax cut, announced at the end of Osborne’s 56-minute Budget speech yesterday, will be funded by a 12 percentage point tax hike on North Sea oil exploration. A fuel “stabiliser” will also attempt to cushion motorists from some of the pain of higher oil prices. Duty on petrol will not rise above inflation until the price of a barrel of oil falls below $75, and after that the hike would be 1p above the retail price index rate of inflation. Fuel duty will rise in line with RPI from 1 January 2012, after Osborne delayed the inflation-linked rise due next week. Labour lampooned Osborne for keeping the VAT rise on fuel, which the opposition party had lobbied to overturn. Labour pledged in its 2010 budget to raise fuel prices by 1p plus inflation each year between 2011 and 2014, but oil prices have risen from around $80 a barrel last March to more than $115. The AA said the fuel tax cut showed that the chancellor had listened to the concerns of motorists. whatsapp Show Comments ▼ Share Motorists win 1p fuel duty cut to ease pain of rising oil prices More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comA ProPublica investigation has caused outrage in the U.S. this Tags: NULLlast_img

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