SNP bid to peg fuel prices and keep jobs

The SNP is to bring forward an amendment to the Budget Bill aimed at addressing rising fuel prices.

The party wants the UK government to introduce a Fuel Duty Regulator to protect jobs in the transport industry and help motorists and businesses.

The move comes after the price of petrol broke the 140p-a-litre barrier for the first time on Friday.

The average price at the pumps has now reached 140.20p a litre, with diesel at a new record of 146.72p, according to the AA.

Petrol prices have now risen more than 2.75p a litre in just three weeks, while the cost was only 132.25p a litre at the beginning of the year, and 140.56p for diesel.

In his Budget, Chancellor George Osborne said the fuel duty rise planned for August which, with VAT added, will amount to 3.62p a litre more for road users, would be going ahead.

The Fuel Duty Regulator proposed by the SNP would freeze fuel duty increases as oil prices rise, with a parallel reduction in duty to match the extra revenue from VAT from higher pump prices.

The proposal has been backed by the Road Haulage Association.

SNP Treasury spokesman Stewart Hosie said: “We urgently need not just a cut in duty, but the introduction of a fuel duty regulator to permanently bring prices under control.

“With the bulk of the pump price made up of tax, the Treasury must stop this highway robbery because soaring fuel prices are hindering economic recovery.”