Chancellor warned on duty and VAT increases
Rural stations could be worst hit by rises
The government has been told by the Independent Petrol Retailers Association and Retail Motor Industry Federation (RMI) that rising fuel taxes could send petrol and diesel prices to record highs and be seriously detrimental to the petrol retailing industry.
From January 1st 2011, fuel duty will increase to just under 59p a litre, with VAT rising from 17.5% to 20% three days later.
Speaking to The Times, Brian Madderson of the RMI pinpointed out-of-town garages as those most likely to be adversely affected by the increases.
“The rural filling stations, which already have the least robust of volumes, are least able to withstand and respond to these tax hikes,” he explains. “They are at the farthest end of the distribution network, so their delivery costs are the highest.”
Madderson also stated in a letter to the Chancellor that, over the past two decades, around 500 sites have been closing each year.
It is estimated that the upcoming rises will add around five pence to the price of petrol, taking the average cost of unleaded to a record 124 pence per litre. The cost of Diesel is also predicted to climb to as much as 128 pence per litre.
“Faced with such daunting circumstances, forecourt owners take the punches, adapt and move forward,” says Keith Jewers, Director, Gulf Retail. “I am continually buoyed by the successes Gulf dealers can achieve.
“Our Regional Managers are experienced in petrol retailing and always on hand to offer the best course of action to all of our operators. We are here to support your business through good times and bad, now and in the future.”
Latest News
In with the Auld at new Alloa petrol station
11th May 2012
State of the art site goes Gulf
Read More…
