Duty Cut not Passed on to Drivers

Mar 30 2011 The 1p a litre reduction in the fuel duty announced by Chancellor George Osborn in his budget speech is not being fully passed on to UK car credit drivers.  This is according to AA figures released on Friday.

The AA says that the average petrol price has only dropped by 0.6p per litre and the price of diesel only went down by 0.57p after the Chancellor´s announcement.

The levy reduction should have been implemented from 6pm on Wednesday.

On Friday the AA said that the average price of petrol dropped to 132.93 p/litre, which is only 0.6p lower than the previous day´s price of 133.53p.  The price of diesel dropped from 140.26p to 140.26p - even less than the petrol price.

According to the AA, only one fuel company passed on the full benefit of the drop in the fuel levy to the UK car credit public, which is Shell.  Supermarket group Morrissons also did the same.

Edmund King, President of the AA said that this clearly showed that the fuel duty cut was not in all cases passed on to the UK car credit public.  He continued "Drivers have long memories and will remember those garages that have not passed on the cut."

King added that this only proved what the AA has been saying since 2005: that the market needs to be more transparent in order to better protect the rights of suppliers, retailers and UK car credit drivers.  According to him the fuel market urgently needs a regulator.

Author: Louise Hutchinson

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