Two-thirds of public name on Chancellor Rachel Reeves to scrap her petrol tax raid after drivers hammered by additional £1billion on the pumps due to Iran struggle
Two-thirds of the public want Rachel Reeves to scrap her petrol tax raid after drivers were hammered by an extra £1billion at the pumps because of the Iran war.
A poll today found 68 per cent of people would back the Chancellor ditching her fuel duty hike amid sky-high pump prices sparked by the conflict.
While other countries are cutting fuel taxes to help out hard-pressed motorists, Ms Reeves and Sir Keir Starmer have vowed to press ahead with their 5p a litre fuel duty hike despite mounting opposition.
It comes into force from September and will on average add another £3 to the cost of a fill-up.
The Ipsos poll found eight in ten British adults are concerned about the impact the war is having on fuel prices, which soared at a record rate last month. The same proportion said they were worried about potential fuel shortages.
The most popular measure for shielding motorists was a cap on how much forecourts can charge for petrol and diesel, which 77 per cent supported. This was followed by scrapping Labour‘s planned fuel duty hike (68%).
Other popular measures around boosting and conserving fuel supplies included issuing more licenses to drill in the North Sea (53%) and mandating working from home for anyone able to do so (51%).
But very few backed the idea of petrol rationing by limiting how many times people can fill-up (24%) or the number of times motorists can use the roads (16%).
Labour has refused to cut fuel taxes for motorists since the conflict started on February 28.
By contrast, several other European countries have taken action to spare motorists some pain at the pumps and keep inflation down.
Spain launched a £4.3billion fund that reduces VAT on fuel by around 26p a litre, with Portugal and Sweden announcing similar schemes.
Croatia, Greece, Austria and Hungary either introduced caps on pump prices or the profits forecourts were allowed to make.
Austria also cut petrol taxes while Germany banned forecourts from hiking prices more than once a day.
Last month, the Australian government announced it was halving petrol taxes for three months to ease pressure on motorists’ wallets.
Analysis by the RAC Foundation found that the cost of the Iran war to drivers at the pumps will hit £1billion later today.
It compared the difference between what drivers would have spent if pump prices had remained the same after February 28 with what they’ve been paying in higher prices because of oil shortages sparked by the war and Iran’s blockade of the Strait of Hormuz.
It means Ms Reeves has also raked in nearly £170million extra in VAT receipts in little over a month, which critics say she should use to at least delay her planned fuel duty hike. However, several top business chiefs have urged her to go further and cut fuel taxes.
Analysis by the RAC Foundation found that the cost of the Iran war to drivers at the pumps will hit £1billion today.
It compared the difference between what drivers would have spent if pump prices had remained the same after February 28 with what they’ve been paying in higher prices because of oil shortages sparked by the war and Iran’s blockade of the Strait of Hormuz.
It means Ms Reeves has also raked in nearly £170million extra in VAT receipts in little over a month, which critics say she should use to at least delay her planned fuel duty hike. However, several top business chiefs have urged her to go further and cut fuel taxes.
Today, average petrol and diesel pump prices jumped again, with diesel leaping to 191.11p a litre – a 34 per cent jump since the war began. Petrol climbed to 158.03p, a 19 per cent jump.
It means filling up the average 55-litre tank in a family car with petrol is now nearly £14 more expensive than before the war, while filling up with diesel is almost £27 dearer.
There are hopes that prices could come down in the coming weeks if the US-Iran temporary ceasefire agreement holds, a permanent peace deal is struck and the Strait of Hormuz remains open.
But it will likely be several weeks if not months before any resulting fall in oil prices is passed on at the pumps, as there is always a delay between wholesale prices falling and that being seen at forecourts.
This is because many forecourts buy their fuel in bulk, meaning they usually continue selling fuel at the more expensive rate they bought it at until they run out and re-stock at cheaper prices.
The Tories’ shadow transport minister Greg Smith said: ‘Cars are essential to millions of Britons.
‘Labour’s political choice to hike fuel duty is a massive kick in the teeth for so many, not least when other countries are cutting fuel duty.
‘This chancellor and PM need to get a grip, understand the real world, and scrap their fuel duty hikes.’
Gideon Skinner, Senior Director of UK Politics at Ipsos, said: ‘Public concern in Britain about the conflict in Iran is reaching a more critical threshold, as it felt less like a distant geopolitical issue and more like a direct threat to British household finances.
‘We see a clear “cost-of-living” lens being applied, with worry about energy costs intensifying and support for government intervention to cap fuel price increases if the Strait of Hormuz were to remain closed.’
Ipsos surveyed 1,136 adults between April 3 and 7, before the ceasefire agreement was struck.
Today, average petrol and diesel pump prices jumped again, with diesel leaping to 191.11p a litre – a 34 per cent jump since the war began. Petrol climbed to 158.03p, a 19 per cent jump.
It means filling up the average 55-litre tank in a family car with petrol is now nearly £14 more expensive than before the war, while filling up with diesel is almost £27 dearer.
There are hopes that prices could come down in the coming weeks if the US-Iran temporary ceasefire agreement holds, a permanent peace deal is struck and the Strait of Hormuz remains open.
But it will likely be several weeks if not months before any resulting fall in oil prices is passed on at the pumps, as there is always a delay between wholesale prices falling and that being seen at forecourts.
This is because many forecourts buy their fuel in bulk, meaning they usually continue selling fuel at the more expensive rate they bought it at until they run out and re-stock at cheaper prices.
The Tories’ shadow transport minister Greg Smith said: ‘Cars are essential to millions of Britons.
‘Labour’s political choice to hike fuel duty is a massive kick in the teeth for so many, not least when other countries are cutting fuel duty.
‘This chancellor and PM need to get a grip, understand the real world, and scrap their fuel duty hikes.’
Gideon Skinner, Senior Director of UK Politics at Ipsos, said: ‘Public concern in Britain about the conflict in Iran is reaching a more critical threshold, as it felt less like a distant geopolitical issue and more like a direct threat to British household finances.
‘We see a clear “cost-of-living” lens being applied, with worry about energy costs intensifying and support for government intervention to cap fuel price increases if the Strait of Hormuz were to remain closed.’
Ipsos surveyed 1,136 adults between April 3 and 7, before the ceasefire agreement was struck.
