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Treasury considering ‘fuel stabiliser’ as business concerns grow
David Cameron has confirmed that the Treasury will investigate the possibility of a ‘fair fuel stabiliser’ amid mounting pressure from the business community.
Speaking to the BBC, the Prime Minister said he ‘understood’ that rising fuel prices were ‘incredibly painful for families up and down the country’.
He revealed that the Treasury is to consider reviving the concept of a fuel stabiliser, which would see a reduction in fuel duty as oil prices rise. The Conservatives first proposed the idea when in opposition in 2008.
However, the Prime Minister went on to say that he did not want to ‘raise people's hopes too far because it is a difficult issue.’
Recent increases in VAT and fuel duty have pushed petrol prices up to their highest ever level, with the average cost now approaching 130 pence a litre.
The Federation of Small Businesses (FSB) has warned that escalating fuel costs are increasing the burden on those firms and hauliers reliant on road transport.
John Walker, national chairman of the FSB, said: ‘In opposition, the Conservative Party promised to put a fuel duty stabiliser in place - something the FSB has been calling for - but they have failed to deliver.
‘As such, they are placing strain on already hard-hit businesses' cash-flow,’ he continued. ‘It is imperative the Government acts now and introduces the stabiliser to avoid a relentless flow of fuel duty increases that simply put small firms on a knife-edge.’