Fuel Prices

Debate between Caroline Nokes and Susan Elan Jones

Tuesday 15th November 2011 Commons Chamber

[Caroline Nokes]

That is indeed of real concern.

It is little wonder that so many of our constituents signed the e-petition—more than 110,000 members of the public called for the debate—and little wonder that the focus has been on the proportion of taxation in the current average price of £1.34 a litre.

[Susan Elan Jones (Clwyd South) (Lab)]

The hon. Lady is making a powerful speech. Could she make it even more powerful by saying that she would support a reversal of the increase in VAT on fuel?

[Caroline Nokes]

I am not convinced that that would be legal.

This morning I met representatives of the Freight Transport Association. They told me that high fuel prices have had a crippling effect on the logistics industry, whose business viability is determined by the price of fuel. Even the smallest rise makes a massive difference to them. A 5p increase in fuel duty adds another £2,350 to the annual price of running an articulated lorry, and the 3p increase that is planned for January would mean that a fleet of 50 vehicles would have to recover £37,000 more per year.