Fuel protestors threaten action

Wednesday, 7 September 2005 12:00 AM

The organisers of the disruptive fuel blockade of 2000 have threatened to take action once again if the government fails to cut its fuel tax.

As nationwide fuel prices approach the £1 per litre mark, the Fuel Lobby said it would recreate its week-long protest by blockading UK refineries on September 14th.

"We want to see an immediate reduction in taxation to bring fuel prices down or as of 06:00 BST next Wednesday there won't be a refinery in the country left open," said spokesman Andrew Spence.

The argument in favour of cutting fuel tax when oil prices are high is not new, but was reiterated earlier this week when the RAC Foundation called for the Treasury to introduce a variable tax on fuel.

It argued that as approximately three-quarters of the cost of petrol at the pump is taxes and duties, the government can - and should - vary these dues to reduce the burden on consumers when oil prices are high.

The Treasury insists, however, that the main way to reduce fuel costs will be through negotiation with oil producing countries to cut oil prices, which currently stand at record levels.

A particular priority cited by officials is to work with the US government to restore production levels affected by the Hurricane Katrina disaster.

The government also claims that more than half of the fuel used in the UK carries little or no fuel duty, and the majority of consumers would be unaffected by a cut in duties.

But the Fuel Lobby, whose picketing of refineries and depots five years ago cost British businesses about £1 billion, expressed concern that spiralling fuel costs will have an inflationary effect on fuel tax.

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