Tuesday 25th October 2011
Be Wiser Insurance

Commercial and personal drivers with diesel engines should have greater support from the government on diesel pricing, it has been argued.

The Freight Transport Association (FTA) noted bulk diesel prices are not falling in line with oil prices, remaining at a premium when compared to standard petrol. The association said that while prices were around the same a few years ago, drivers now pay a premium of around ten pence per litre for diesel cars.

The chief economist of the FTA said the association is not worried about Oil Company profits, noting that the prices paid for diesel by operators are in line with those across the globe.

"Our frustration is with the UK government, which although it wrings its hands about UK industry struggling at a time of economic recession, does absolutely nothing about it," he said.

"The Government must recognise that diesel and gas oil are industrial fuels which are essential in the production and distribution of goods and services for industry and the consumer, and should tax them accordingly. Elsewhere in Europe, member states tax diesel at a lower rate than petrol and many have introduced rebates for operators to deal with the worst excesses of fluctuating diesel prices. This is not the case in the UK." He concluded.

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