Car finance: government 'should cut fuel tax by 10p per litre'

Nov 3 2008

The government must cut tax on fuel by as much as ten pence per litre in order to make driving more affordable for new and used car owners, say the Association of British Drivers (ABD).

ABD spokesman Hugh Blacon insisted that the government could "quite easily" reduce taxation - a move which would help people considerably with the cost of driving.

Despite the recent fall in petrol prices, research commissioned by TomTom found that 66 per cent of Car Loans customers were still concerned about rising costs, with more than a third believing driving would become too expensive for the average person in the future.

"The reason we are paying too much for our fuel is because the government is taxing us too much," Mr Blacon said.

He added that between 60 and 70 pence in every pound spent on the pumps "went straight to the Treasury" and called for the government to cut rates by ten pence per litre.

Research from the AA insurance group revealed that petrol prices have fallen faster this month than the record rises earlier in the summer, but the UK still has the eighth highest unleaded price and second highest diesel price in Europe.

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