Ministers have been asked by Boris Johnson to develop measures to ‘expose’ petrol stations who fail to pass on cheaper pricing as a result of the government’s fuel duty decrease.
The Prime Minister is pressing for action after numbers released last week revealed that average fuel prices had surpassed £1.70 per litre for the first time, despite the Chancellor’s March 23 introduction of a 5p per litre tax cut.
Officials from the Department of Transportation have been entrusted with devising strategies to ‘name and shame’ garages that chose to increase profit margins rather than pass the savings on to customers.
According to Sunday Telegraph, Transport Secretary Grant Shapps has suggested a ‘pump watch’ name-and-shame scheme.
A Downing Street source said: ‘Officials are considering mechanisms available to expose those companies that aren’t passing on tax benefits to consumers.’
Figures last week showed the average price for a litre of petrol exceeded £1.70 per litre for the first time ever.
It has increased by 41p in the last 12 months, adding around £23 to the cost of filling a typical 55-litre family car.
The average price of a litre of petrol at UK forecourts on Tuesday was 170.4p, according to data firm Experian Catalist. Diesel also reached a record high of 181.4p per litre.
Chancellor Rishi Sunak implemented a 5p per litre cut in fuel duty on March 23, two days after average prices were 166.8p for petrol and 180.3p for diesel – but retailers have since been accused of raising profit margins.
Demands to slash fuel duty and VAT by 40 per cent were raised in Parliament last after more than 102,000 signatures were collected for a petition outlining the two-year proposal to combat soaring costs for fuel.
MPs debated the petition on reducing fuel duty and VAT in Westminster Hall and, while not specifically endorsing the proposal, called for the Government to go further to help.
