The Government has taken such a massive fuel tax premium since the beginning of April that it can already afford to scrap its proposed 2p a litre fuel duty rise scheduled for October, it has been claimed.

From the start of the tax year on April 1 to Friday (May 16) the Government has had a windfall of £505 million in tax due to the rising price of oil - the same as what will be raised by the proposed 2p fuel duty rise in October during this tax year, according to the British Chambers of Commerce.

The findings have come from the British Chambers of Commerce fuel duty model, which takes account of monthly fluctuations in fuel sales, the £/$ exchange rate, the price of crude oil and North Sea oil production.

Already The Telegraph is running a ‘Fair deal for Drivers’ campaign that is calling on Government to abandon plans for the fuel tax increase and scrap plans for Vehicle Excise Duty reforms next year.

The Road Haulage Association (RHA) is also considering a mass lobby of Parliament to introduce a Fuel Duty Regulator which would mean that high oil prices would attract lower fuel duty.
Labour’s waning popularity may influence a decision to scrap the intended raise. Industry analysts are reporting that we could be paying £1.50 per litre of petrol by October of this year and the dreaded £2 per litre could be in sight. 

Faye Sunderland.