The UK government has confirmed there will be a cut on the duty paid on fuel in a bid to stop the shooting prices of oil impacting on car running costs.
The announcement included the abolition of the fuel duty escalator which has lead to fuel prices rising at a rate above inflation. This has been replaced with a ‘fair fuel stabiliser’ meaning that petrol prices will only increase at the rate of inflation despite the yoyo’ing price of oil.
The Government also revealed their plan for if and when oil prices drop, they will change the stabiliser rate to around 20% keeping fuel at a fair and affordable price while oil costs are low.
This will take affect once prices dip to $75 (£46.88) a barrel, a price which the Government think is fair. Experts however have criticised this move saying that although on the face of things the public will see fuel prices being lowered the increase of tax on oil and gas resources in Scotland could end with the Government playing a dangerous game with oil giants.
Plans to increase fuel prices by 4p per litre have been put back until 2012 but this also coincides with plans to increase the tax on company cars.
As a business car leasing may still be the best option as many leasing companies include costly services and certain repairs as part of their payment plans. As a registered business you are also entitled to claim back up to 50% VAT on vehicles, meaning that now more than ever is it a good idea to look at leasing a vehicle.
Source – FleetNews