DUP MP writes to Treasury to complain of fuel taxes and lack of government support amid hike in prices at the pump
Carla Lockhart has written to the government to complain of the “significant tax burden on motorists” and home heating costs – adding that the government is not doing enough to help.
Ms Lockhart was speaking after the Irish government announced it was cutting fuel duty on petrol and diesel as the cost of both has soared in recent weeks following the hostilities in the Middle East.
She was also speaking after the chancellor Rachel Reeves announced on Tuesday that she intends to clamp down on “profiteering” from fuel firms (as well as stressing she wants to see more nuclear power reactors built, which would cut the UK’s reliance on imported fossil fuels).
Last week, the Consumer Council’s weekly survey of fuel prices showed that petrol prices in the Province were up by 10.8% since the start of the Iran war, diesel by 19.2%, and home heating oil by roughly 90% (the average varies, depending whether it is being bought in bulk).
Its latest weekly bulletin on prices is due out tomorrow.
Meanwhile, the cost of red diesel has gone up by over 60%.
Amid all this, Ms Lockhart says: “Motorists continue to pay around 55% in tax on every litre of fuel through fuel duty and VAT.
"At a time when households and businesses are under real pressure, that level of taxation must be seriously questioned.
“In Northern Ireland, the situation is even more acute.
"Around 60% of households rely on heating oil, leaving them particularly exposed to volatile global prices and with fewer protections than those on the gas grid.
"Yet the support referenced [by the chancellor in her speech] amounts to just £17m overall, equating to roughly £30 per household.
"That is nowhere near sufficient and does not reflect the scale of the challenge facing families.
"I have written to the chancellor asking how this level of support can be justified, and urging a review of both the fuel duty burden and the oversight of pricing to ensure fairness for consumers.
"Families are being squeezed from all sides, through high taxation on fuel and inadequate support for home heating.
"The government must act to deliver meaningful relief.”
Asked about the spiralling price of red diesel, UFU president William Irvine told the News Letter: “Rising red diesel prices are placing further pressure on farm businesses across Northern Ireland at a time when many are already operating on very tight margins.
"Fuel is a fundamental input for agriculture, and sustained increases inevitably feed through into the cost of producing food.
"That has implications not just for farmers, but for the wider supply chain and ultimately consumers.
"What is particularly concerning is the lack of transparency around pricing, with many farmers only learning the cost of fuel at the point of delivery.
"Greater clarity and fairness in how prices are set is essential.
"Farmers are used to dealing with volatility, but continued global instability highlights the need for a more resilient and sustainable food production system here at home.”
The News Letter conducts regular surveys of home heating oil prices in the Province, and there are signs that prices are now beginning to sink.
Here is a breakdown of the cost of 500 litres of fuel from different firms as of today (with their price last Friday in brackets):
North Down firm: £547.70 (down from £621)
North Armagh firm: £555 (down from £580)
Mid-Antrim firm: £590.10 (same)
South Tyrone firm: £569.88 (down from £594.56)
Londonderry city firm: £599 (same)
West Fermanagh firm: £599 (same)