Fuel Prices and the Cost of Living

Debate between Angela Eagle and Gordon Birtwistle

Wednesday 16th March 2011 Commons Chamber

[Ms Eagle]

I will get on with my remarks and give way to the hon. Lady shortly.

The cost of oil has been rising on world markets as a result of underlying increases in demand from Asia and uncertainty because of the unrest in the middle east. Just a week ago, petrol prices hit a new high at the pumps. The average price for unleaded fuel is, a week later, still £1.32 a litre. That means that the cost of fuel has risen 7p a litre since the beginning of the year. The AA pointed out that the £6 gallon has arrived for the first time, and that prices for diesel have soared even higher, currently averaging £1.38 a litre.

[Gordon Birtwistle (Burnley) (LD)]

I am grateful to the hon. Lady for giving way—[Interruption.] May I refer to an e-mail that I received—[Interruption.]

--- Later in debate ---

[Ms Eagle]

That is nought out of two for the hon. Gentleman. Perhaps the next time he tries to intervene, he will manage to be in order.

[Gordon Birtwistle]

rose—

[Ms Eagle]

I am not willing to give way to the hon. Gentleman. [Interruption.] He can show me the e-mail afterwards.

The Conservative-led Government’s decisions to raise VAT to 20% may have been expertly disguised before the election so that the voters were kept in the dark about it, but we all know about it now. Increased VAT has added an average of £450 a year in extra cost to a family with children and has pushed the headline CPI figure to 4%, which is double the Bank of England’s target.

[Gordon Birtwistle]

rose—

[Ms Eagle]

I will not give way to the hon. Gentleman.

As we all know, VAT applies to petrol. The Library calculated that the Conservative Government’s 2.5% increase in VAT has added nearly 3p to the cost of a litre of petrol when people are least able to absorb that extra cost.