Rachel Reeves urged to scrap fuel duty rise amid oil price fears following Iran-US war
The chancellor is facing urgent calls to cancel planned increases in fuel duty at a time when concerns are growing about the US-Iran conflict.
This claim comes at a time when fears are growing that geopolitical tensions will significantly increase oil prices, directly affecting consumers.
Last year, Rachel Reeves announced that the long-running fuel tax cut would end from September, introducing a 1p increase followed by two 2p increases in subsequent years.
However, following US and Israeli attacks on Iran over the weekend and the killing of the country’s Supreme Leader Ayatollah Ali Khamenei, concerns about the impact of oil price increases on consumers at the pumps have intensified.
While the oil price rose to $80 per barrel following the attack, some analysts suggest it could rise above $100 per barrel.
Speaking ahead of the spring statement, SNP economy spokesman Dave Doogan said: “With real fears that pump prices will now rise due to the situation in the Middle East, the Chancellor needs to scrap price rise plans rather than stubbornly double down before facing a devastating double whammy for motorists.
“Petroleum prices are already rising rapidly; the last thing drivers and businesses need now is another damaging tax increase from Labor.
“The Chancellor needs to think logically, recognize what is happening globally and abandon plans to increase pump prices immediately.
“Everyone knows Keir Starmer has broken Labor’s promise to cut energy bills by £300 – it would be another slap in the face for families if Labor worsens the cost of living crisis with a plan that will inevitably raise prices.
“After 14 U-turns, this chaotic Labor Government’s decision to cancel plans to increase fuel duty would be a truly welcome U-turn from motorists, businesses and families across Scotland.”
A Treasury spokesman said: “To support motorists across the country, we have extended the 5p fuel duty cut from this month until the end of August.”
