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Could a fuel price stabiliser be the answer?

Posted by Luke Dadson 0 Comment Jan 22, 2011

Anyone who’s filled up at the pump recently will need no reminding that petrol is currently about £1.25p/litre and diesel is £1.30-plus. In some more remote parts of the country it is said to have hit £1.50/litre. Red diesel on farm is about £65p/litre.NFU Scotland’s is among the voices reminding government about the idea of a fuel stabiliser mechanism, as well as scrapping any plans to increase fuel duty further in April. Such a mechanism would regulate the proportion of tax paid on fuel in relation to crude oil prices, effectively keeping a cap on the total price and, hopefully, reducing fuel pressure on inflation. Similarly, the NFUS points out that in many other European countries, fuel duty is variable depending on location. This prevents isolated rural communities being disproportionately affected by high fuel costs.These are sound ideas and deserve serious consideration. And when will the cheap, green biofuel alternative be on offer at the pumps please?

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