Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Osborne hits back in row over petrol prices

Joe Churcher,Emma Hallett,Pa
Friday 04 February 2011 10:01 EST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Chancellor George Osborne has refused to take the blame for rising petrol prices - rejecting claims by world oil producers that taxes were responsible.

Mr Osborne said drivers in the UK were "paying the price" for mounting oil prices and Downing Street said "non-tax factors" were mostly driving the cost at the pump.

He hit back after Opec secretary general Abdullah al-Badri told drivers to "blame your government" if they were unhappy at paying more to fill their tanks.

"Don't blame Opec, blame your government. It's not because of the price of oil; it's because of taxes," the head of the body, which represents 40% of world oil production, said.

Prices hit record levels again this week despite a fall in wholesale costs which the AA pointed out had seen pump prices fall in other European countries such as France and Germany.

On February 1, the average UK price for petrol was 128.65p per litre, with diesel at 133.38p.

That has helped sustain pressure on Mr Osborne to cancel a 1p duty rise due in April.

The Chancellor repeated his pledge to examine that option and said the Government continued to look into the introduction of a "stabiliser" mechanism to iron out big price fluctuations.

"Oil prices around the world have gone up a lot in recent months and you see that in many countries and, of course, unfortunately British drivers are paying the price for that at the petrol pump," Mr Osborne said when asked about the Opec head's comments.

"We want to see concerted international action to try and get the oil price down and the G20 is looking at that," he said during a visit to a high-tech manufacturing firm in Cheltenham.

Prime Minister David Cameron's spokesman said: "Clearly if the oil price goes up, that is going to impact on the price at the petrol pump.

"If you look at the recent rises in petrol prices, the majority of the increase is accounted for by non-tax factors."

An AA spokesman said: "Everybody wants a slice of the cost of oil and fuel. At the end of the chain is the motorist and businesses who can't protect themselves.

"What we need is transparency in the market so that we can see who is taking the biggest chunks and a fuel stabiliser to balance high prices."

Public suggestions on dealing with fuel prices would be among those considered ahead of the budget if people used a new online system to submit them, Mr Osborne said.

Ideas are being invited via the Treasury's website and will go "direct to the desks" of officials working on the March 23 Budget, it said.

"We want to hear people's ideas about how to grow the British economy, also listening to people on issues like fuel duty and hear what they have to say," the Chancellor said.

"I understand how squeezed families feel and I'll be listening to them and looking at all the options."

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in