Monday, 10 November 2014

Fuel Prices must come down....FAST

Clive Jones, Liberal Democrat Parliamentary candidate for Wokingham, and the Chief secretary to the Treasury, Danny Alexander MP, have urged petrol and diesel distributors to cut prices further after recent declines in the cost of oil.

Oil has fallen from around £72 a barrel in June to about £52, a decline of about a quarter.

But petrol prices in the UK have only fallen from a high of around 131.7 pence per litre in the summer to 124.22 pence - a decline of just 6%.

Clive Jones, Liberal Democrat PPC for Wokingham, says "Liberal Democrats in government have worked hard to keep the prices of petrol and diesel down for consumers. This is one of the most expensive items in the household budget. We need to help people keep their fuel costs down.

It is also really important for business that fuel costs are controlled. rising fuel costs squeeze margins for many small and medium size businesses. I know from talking to many businesses that fuel costs are an important part of their budgets. This Government is helping businesses."

 Clive Jones filling his car with petrol.
Danny Alexander says: "Especially in the current economic circumstances people would rightly be angry if they feel that pump prices don’t fall as much as they should on the back of falling oil prices.

“I believe it’s called the ‘Rocket and Feather’ effect.

“The public have a suspicion that when the price of oil rises, pump prices go up like a rocket. But when the price of oil falls, pump prices drift down like a feather.

“This has been investigated before and no conclusive evidence was found. But even if there were a suspicion it could be true this time, it would be an outrage.

“So I will be writing to the major players involved, seeking their assurance that they are doing all they can to pass on the benefit of falling oil prices as quickly as possible.

“When the price of oil falls, the public have a right to expect pump prices to fall like a stone, not a feather.”

Our record:

  • We inherited a Labour plan that fuel taxes would go up by inflation plus one pence year on year throughout this parliament. This was their so-called ‘fuel duty escalator’.
  • The Liberal Democrats in Government cut fuel duty by 1p in 2011, scrapped that escalator and scrapped the inflation rises.
  • That’s £22.5 billion of support for motorists and businesses and will mean petrol & diesel will be 20p per litre cheaper by the end of this Parliament compared to Labour’s plans.
  • By cutting fuel duty and scrapping Labour’s fuel duty escalator, fuel is 20p a litre cheaper, the average fill-up costs £9 less and a typical motorist will have saved £680 in this parliament.