By Max Clarke
The Chairman of RMI petrol speaks to Fresh Business Thinking about the impacts the Libya unrest has had on the price of Brent Crude and how this will affect the UK market.
“Following the turmoil and violence in Libya over the last couple of days Brent crude oil prices have today reached $110 per barrel". Said Brian Madderson, Chairman of RMI Petrol.
"RMI Petrol predicts that this rise will filter through to petrol forecourts over the next few weeks, leading to an estimated 5 pence per litre increase by the 1st April. This is further bad news for motorists and forecourts as this increase looks set to coincide with the introduction of the previous Government’s ill thought out fuel duty escalator adding a further 5 pence per litre at the pump — in total a 10ppl jump. The RMI once again urges the Government to abandon plans to introduce this fuel duty escalator which will impact directly on inflation, businesses and consumers.
“Windfall tax arising from North Sea Oil revenues and 20% VAT on increasing prices at the pump should provide adequate room for the Treasury to offset any further direct tax on the forecourts." Continued Madderson.
“The Fair Fuel Stabiliser is a concept needing much further study and engagement with industry so is unlikely to be introduced in the March Budget.”