Fuel stabiliser a no-goer
30th September 2010, Page 7
30th September 2010
Page 7
Page 7, 30th September 2010
— Fuel stabiliser a no-goer
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.
If you've noticed an error in this article please click here to report it so we can fix it.
THERE IS NO cash for the Treasury to support a fuel-price stabiliser, according to a study released by the Office for Budget Responsibility (OBR).
The Treasury had asked the
OBR to produce a study over the summer looking at the effect of oil price fluctuations on the public finances, and examine options for the design of a fair fuel stabiliser.
The OBR study says temporary increases in oil prices have virtually no impact on the public finances. It adds that any tax revenue rises derived as a result of a growth in fuel prices would be offset by a fall in demand for fuel and for goods and services in the wider economy.
As a result, it concluded there will be no money available for a stabilising cut in fuel duty.