To ask the Chancellor of the Exchequer
(1) what further plans he has for the level of fuel duty in each year to 2015;
(2) pursuant to the Budget Statement of 23 March 2011, what steps the Government have taken in relation to the passing on to consumers of the reduction of one penny in fuel duty;
(3) what assessment he has made of the potential effects of the reduction in fuel duty on the logistics industry in the UK.
Budget 2011 abolished the fuel duty escalator and replaced it with a fair fuel stabiliser. Duty will increase by inflation only, when oil prices are high. If the oil price falls below a set trigger price on a sustained basis duty will increase by RPI plus 1p per litre. The Government will consult informally before setting the level and mechanism for the trigger.
Average fuel price data suggest that generally there has been a pass through of the 1p per litre reduction in duty on deliveries from refineries, although ongoing increases in the price of oil have also impacted pump prices. The duty reduction potentially helps to ease the cost pressure of peaking oil prices on the logistics industry.