Petrol prices have fuelled double-dip recession, says RHA

26th April 2012

Increases to the price of petrol for motorists have played a part in the UK’s recent slip back into recession, according to the Road Haulage Association’s chief executive Geoff Dunning.

Figures released yesterday (25th April) show that the economy has shrunk by 0.2 per cent over the first quarter of the year, signalling the beginning of a double-dip recession.

However, Mr Dunning believes that the government’s decision to increase the price of fuel has contributed to the decline.

“If Government would heed our advice and address the issue of fuel duty once and for all, this is a situation that could almost certainly have been avoided,” he said.

With motorists already facing bills for important checks like MOTs and tyre fitting, petrol was seen as one area in which some relief could have been provided.

"Users of petrol and diesel fuels are desperate to see a reduction in fuel duty,” he said.

However, the recent budget report saw George Osborne confirm plans for a price increase. Despite this, Mr Dunning believes it is not too late to reverse the move and aid the economy’s recovery.

“The price of a tank of fuel would reduce and the subsequent savings would be put back into the economy, giving trade the boost it so desperately needs,” he commented.
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Posted by Danielle Barge