Osborne under pressure on fuel cost

MPs have backed a motion calling for a 'price stabilisation mechanism' to tackle rising fuel prices
12 April 2012

Chancellor George Osborne is under pressure from the Commons to hold down fuel prices.

MPs called on the Government to scrap fuel duty rises planned for next year and backed a motion calling for a new price stabilisation mechanism.

More than 100 MPs - including 83 Tories and five Liberal Democrats - had signed the motion in advance.

It was debated in the Commons after an e-petition calling for action on soaring fuel prices attracted more than 100,000 signatures.

The motion - passed by MPs without a vote - comes ahead of this month's Autumn Statement when Mr Osborne will outline the state of the economy and respond to the Office for Budget Responsibility's latest forecasts.

It has been reported that ministers are reconsidering a 3p duty hike pencilled in for January.

Mr Cameron's official spokesman said any change in tax policy would be announced in the Budget, but stressed: "We recognise as a Government that motoring is an essential part of everyday life for many families and fuel is a significant cost for those families."

Treasury minister David Gauke said fuel duty rises could only be avoided by finding money from other areas.

Mr Gauke told the BBC: "Of course we will listen to these concerns, but there isn't an easy answer to this, there isn't some great pot of money.

"We are going to have to take difficult decisions to get the deficit down, but within that we have shown sensitivity to the needs of motorists."

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