• Fuel Prices

    09 July 2018

    Dear Constituent

    Thank you for contacting me about fuel prices.
    The Government recognises that fuel costs remain a significant part of business and household costs. In order to reduce living costs, and support those who are just about managing to get by, fuel duty has been frozen for an eighth successive year. Since 2010, this will have saved the average car driver £850 and the average van driver over £2,100 compared to pre-2010 fuel duty escalator plans. Fuel duty has now been frozen for the longest period in 40 years, at a total cost to the Exchequer of £46 billion since 2010.
    The Competition and Markets Authority, the body charged with monitoring competition within UK markets, investigated the fuel retail market in 2013 in order to determine whether there was anti-competitive behaviour by market participants. It found no evidence that retailers are colluding to fix pump prices.
    Reduced duty rates are offered on alternative fuels as an incentive for drivers to move to cleaner fuels. Liquefied petroleum gas, compressed natural gas, liquefied natural gas, biomethane and aqua-methanol all benefit from reduced duty rates.
    There is no legislative framework for purchase receipts, which are simply acknowledgments of payments. There is VAT legislation on when an invoice must be provided, but this only states that VAT-registered businesses are obliged to provide invoices to other VAT-registered businesses. Expanding this information to cover all forms of taxes and duties, for all private motorists as well as businesses, would dramatically increase administrative burdens for retailers, and therefore their costs. I understand that the Government therefore has no plans to implement this proposal.
    Thank you again for taking the time to contact me.
    Yours sincerely

    Mel Stride

    MP for Central Devon

    Financial Secretary to the Treasury and Paymaster General