Monday, January 3, 2011

Britain fuel price rises risk protests


Source: Press TV
http://www.presstv.ir/detail/158364.html


New tax rises in Britain, which could see petrol prices jump by over 3p a liter, have drawn condemnation by British MPs as activists are warning of protests against the move.

A cross-party group of MPs in London joined by Scottish and Welsh Assembly governments has demanded that Downing Street cut fuel duty to help those whose jobs are affected by the fuel prices rise.

The government announced a 0.76p a liter increase in fuel duty on Saturday, which will be coupled by a VAT rise from 17.5% to 20% on Tuesday to raise the cost of unleaded petrol by an average 3.5p a liter.

This comes as unleaded petrol prices are already at a record high level of 124.16p, which is a 14% rise year on year.

The price hikes will not stop at that as the government is set to further increase fuel duties in April.

The prospect of record high prices for fuel has led farmers, carrier companies and taxi drivers to begin talks on a joint protest campaign.

The options on the table are causing disruption by blockades and rallies at refineries similar to the demonstrations in 2000 and 2005.

"The cost of fuel which sparked the protests in 2000 pales in comparison to what it is now," said David Handley who was among those launching the earlier protests.

This comes as Tory MP David Morris along with several Labour MPs have presented a motion on fuel price cuts to help the “hard-pressed haulage industry”.

Meanwhile Wales' rural affairs minister Elin Jones complained about the move damaging Welsh businesses “particularly in the farming and haulage sectors”.

"People are rightly asking why the recovery is being stifled by the UK government's short-sighted actions. Fuel pricing in rural areas continues to be an utter scandal. This tax hike will only make that situation worse," she said.

Also the Scottish government called for action “to deal with the impact of rising petrol prices” as well as a discount on fuel duty especially in the rural and island communities which will be “hardest hit by rising fuel prices”.

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