I know that many of my constituents are concerned about the rising cost of fuel, as a result of increasing global oil prices and energy costs.
The Government has frozen fuel duty for the twelve consecutive years since moving away from the pre-2010 escalator. In recognition of the unprecedented circumstances pushing up fuel prices, I welcomed the decision announced at the Spring Statement to cut fuel duty by five pence for a full year across all fuel duty rates but realise that it is simply a drop in the ocean for those who face even higher prices now than then.
Oil and gas companies are currently seeing extraordinary windfall profits due to global spikes in commodity prices, driven in part by surging demand after the pandemic and Russia’s war. As a result of high energy prices, millions of households across the UK are struggling to make their incomes stretch to cover the rising cost of living. The Government has therefore introduced a levy which will be charged on profits of oil and gas companies at a rate of 25 per cent, on top of the existing 40 per cent headline rate of corporation tax, raising around £5 billion over the next year to support households. It will be temporary, and as the oil and gas price decreases to normal levels, the levy will be automatically phased out.
I understand that the Business Secretary wrote to the Competition and Markets Authority (CMA) to request an urgent review of the UK fuel market, to investigate whether it is adequately protecting consumer interests.