ATS Euromaster says fuel duty increase scrap is good, but not good enough

6th December 2012

The Chancellor of the Exchequer, George Osborne, announced yesterday that the plan to raise fuel duty by three pence has been scrapped.

Succumbing to pressure from voters and FairFuelUk, the Autumn Statement saw the Chancellor waiver and drop the proposed rise that was set to be put into force in January 2013.

As VAT is currently at 20 per cent, the price at the pump will be kept down by approximately four pence per litre.

In response to the statement, tyre and motoring service company ATS Euromaster said that the Chancellor had “avoided delivering a hammer blow to the economy” but expressed a level of disappointment that there wasn’t more done.

“What we really needed to hear was a three-to-six pence per litre (ppl) reduction in fuel duty to encourage growth and consumer spending, whilst reducing distribution costs to everyone’s benefit,” ATS recommended.

Ian Stuart, group managing director at ATS Euromaster, has praised the decision to drop the fuel duty rise, but has suggested that the government isn’t doing enough to help private motorists, fleets and hauliers. Stuart believes that a three-to-six ppl reduction would have “given the country a far bigger boost”. 

As the UK’s largest comprehensive tyre specialist, and itself an operator of 1,200 vehicles, ATS Euromaster has seen the effects of the country’s economic issues on the motoring industry.

Stuart said: “We’re technically out of recession, but the country is still desperately trying to get back on its feet and the cost of fuel is dragging businesses and motorists down.”

While prices on the forecourt still remain high, ATS Euromaster has given advice to motorists on how to save on motoring costs.

“Tyre condition directly impacts on fuel efficiency. It doesn’t matter whether you are driving a car, van or truck – get your pressures and wheel alignment right, and you’ll save fuel,” Stuart advises.

Industry research conducted by Michelin has shown that under-inflated tyres can increase fuel consumption. Under-inflation as little as 15 psi (one bar), can increase rolling resistance, which can lead to a six per cent increase in the rate of fuel consumption.

Mr Stuart added: “Checking tyre condition isn’t just about vehicle safety. It’s about being kinder to your wallet and to the environment. The savings are there for the taking – it’s a no brainer to take advantage of them.”

These savings should be exploited now, as the scrapping of the three pence rise may not last forever. Phil Harold of PwC has recognised that while it may be good news for now, the increase may make an appearance in September 2013, describing the decision in the Autumn Statement as a “temporary reprieve”. 

Want to find out how you can save even more on your tyre and motoring costs? ATS Euromaster can show you how.

Posted by Danielle Barge