Not Again Prime Minister - Increased Fuel Duty

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Staveley Head, one of the country's leading commercial vehicle insurance brokers, has expressed concern that the government proposes to increase the duty on fuel by 2p per litre from the 1st. April.

Staveley Head, one of the country's leading commercial vehicle insurance brokers, has expressed concern that the government proposes to increase the duty on fuel by 2p per litre from the 1st. April. This means that for every litre of fuel sold the Treasury will receive 66p, and that is a whopping 71% of the price.

A spokesman for Staveley Head said, "This is going to be another blow, not just to the private motorist, but to all companies and businesses who have extensive vehicle use during the day to day conduct of their business. Those who spend most of their working day behind the wheel of a vehicle, such as hauliers, couriers and taxi drivers, are going to be particularly badly hit. In this present economic climate there are many businesses which are already operating only just above the break-even point, and this Government tax increase may well be sufficient to push many of them into liquidation."

The question now is, will suppliers and service providers be in a position to absorb this increase or will they be forced to pass it on to the poor suffering consumer. With turnover and profit margins decreasing and overheads continueing to rise it's likely that most companies will not be in a position to do anything other than pass on the increase.

The Staveley Head spokesman went on to say, "As commercial vehicle insurance brokers part of our core business is providing taxi insurance, HGV insurance and courier insurance to our clients scattered throughout the UK. And their welfare is of primary concern to ourselves. The Prime Minister stated in July of last year that he would not raise fuel tax for at least twelve months. This is the second increase since he made that pledge. The first one was in December when after reducing VAT to 15% he increased the duty on fuel by 2%. Of course VAT is reclaimable but fuel duty isn't - a double whammy. We are most concerned about the affect this is going to have on the haulage industry in general."

So petrol prices are going up, Gordon Brown has decided. If you drive a commercial vehicle or a motor car for business use you're going to have to find savings elsewhere. You could make a start with your insurance premiums. If you want taxi insurance or HGV insurance get on the telephone.

Staveley Head is one of the country's leading insurance providers and will give you all the advice and assistance you need, including a very competitive insurance quote.

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Paul Delaney
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