Darling shies away from 2p fuel duty rise

Chancellor Alistair Darling is understood to be prepared to postpone a 2p
rise in fuel duty until autumn, following a backlash from motorists concerned
about the soaring cost of living.

He believes more sophisticated environmental taxes such as penalising ‘gas
guzzlers’, are more likely to encourage ‘green’ behaviour, The Daily

As oil prices hit a new high of $US107 (?53) a barrel yesterday, pushing the
average cost of a litre of unleaded petrol to more than 105p – a 20% hike in 12
months – a
source said the government understood rising fuel costs were of increasing
concern and a delay was likely.

‘Darling does want to send out a signal that fuel use needs to be cut and
people have to pay for the environmental damage. However, previous fuel duty
rises have been delayed,’ the source said.

Further reading:

Darling puts finishing touches to green budget

story in The Daily Telegraph

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