Action call over drivers ‘fleeced’ at fuel pumps

Motorists pay more for diesel here than in any other European Union country – even though diesel prices in the UK before tax is applied are the third cheapest.

A staggering 61 per cent of pump diesel prices – and 62 per cent for petrol – goes to the Treasury in tax, according to new figures revealed as North Yorkshire MPs warned Ministers they must help motorists in next month’s Budget and ease the burden on rural areas.

Anne McIntosh, Tory MP for Thirsk and Malton, said she was “surprised” by the prices, which helped push inflation to four per cent in January, leaving families facing a severe squeeze on household budgets.

Economic Secretary Justine Greening said the Government was considering “all options” in the run-up to the Budget on March 23, with the Treasury coming under increasing pressure to postpone a planned duty increase of 1p above inflation scheduled to come into force in April.

Ms Greening also promised an “update” at the Budget on the Tory proposal for a fair fuel stabiliser – to reduce the amount of tax taken by the Government when oil prices rise – but refused to be drawn on whether isolated parts of Yorkshire could qualify for another possible scheme, to trial a 5p per litre discount on fuel in remote rural areas. If it can get permission from Europe, the Government intends to pilot the scheme on Scottish islands, and MPs fear Yorkshire may miss out.

Last night businesses demanded action from the Government. A spokesman for the Road Hauliers Association said: “It’s vital that the Government listens to us. It’s essential we see a freeze in April, but a freeze in April is just a very short-term fix.

“We’ve got to see something happening in the long term whereby the price is stabilised.”

The details of European pump prices were revealed in a briefing document compiled by the House of Commons library.

They show the average price of a litre of diesel at the pump in Britain last month was £1.29 – of which 78p, or 61 per cent, was tax and duty. But when prices are compared before tax is added, British diesel is the third cheapest, at just 51p per litre.

The next most expensive diesel was in Sweden at £1.24 per litre, while in Greece it was £1.20 but just £1.06 in Luxembourg. When petrol prices are compared, Britain has the ninth highest pump price at £1.25 per litre, of which 62 per cent – or 78p – goes to the Treasury. The pre-tax price of 47p a litre is the second cheapest in the EU, no other country taking a higher percentage in tax and duty.

The figures will add to pressure for the Government to respond and help out motorists as families and businesses struggle to meet rising bills.

Rural areas are being particularly badly hit because they are more reliant on cars, with less access to public transport.

In a Westminster debate yesterday, Miss McIntosh renewed her plea for parts of the region to be helped through a discount scheme for rural areas which could save motorists £500 a year. There are fears it may only be targeted at Scottish areas after Ministers announced plans to test it in the Inner and Outer Hebrides.

Skipton and Ripon MP Julian Smith said: “Although the Financial Secretary has said that far-flung areas of Scotland might qualify for rural pilots, North Yorkshire is the most rural county in England and must surely qualify for a pilot if the Government decide to run some.”

Ms Greening said the Government was “still looking at the exact scope of the scheme” and added that the Government was listening.