‘With motorists suffering the consequences of higher prices, and many fuel retailers barely clearing costs, the Chancellor of the Exchequer must cancel the fuel duty increased scheduled for 1 April,’ said Ray Holloway, Director of the RMI’s Petrol Retailers Association (PRA).

The PRA is co-signatory on a cross-industry letter to the Daily Telegraph that calls on Chancellor of the Exchequer Alistair Darling to cancel the 2 pence per litre increase due on 1 April. This was announced in the last budget, but delayed until April.

Holloway believes that the increase would be disastrous: ‘Increasing fuel tax  would mean an immediate increase in prices for the consumer, and would almost certainly push a number of forecourt businesses out of business.’

The organizations behind the letter include  the Freight Transport Association (FTA) and the Road Haulage Association (RHA), along with the PRA, the Federation of Small Businesses (FSB), National Farmers Union (NFU), and the RAC Foundation.

Ultimately, the PRA believes duty should be reduced: ‘The PRA will continue to push for a reduction in fuel duty, and at the very least the cancellation of the further increase of 2.35 pence per litre, representing 2 pence in excise duty plus VAT, planned in the 2008 budget,’ said Holloway.