News: Fuel duty: Road rage

THOUGH Britain is a small, densely populated island, it costs a lot to get around it. The petrol price stands at £1.34 a litre, just a few pence below its May peak. Grumbles are growing. On November 15th an electronic petition signed by more than 100,000 people prompted a debate in Parliament. MPs passed a motion calling on George Osborne, the chancellor, to scrap plans to put up fuel duty in January in line with inflation.The long-standing anger over prices has flared repeatedly. In 2000 truckers blocked refineries, prompting a run on petrol. Then, unemployment stood at 5% and inflation was low. People feel far more pinched now. Politicians ignore the current fuss at their peril.The price of fuel is controversial because Britain is car mad—three-quarters of miles travelled are by cars and vans—and because a large chunk of pump receipts go directly into government coffers. Taxes on fuel, including VAT, account for 63% of its cost. That is a slightly lower proportion than in Greece or Sweden, but far higher than in America, where raising fuel taxes is nonetheless said to be a “third rail”, deadly to politicians.Aware of petrol’s political potency, in March Mr Osborne cut duty by a penny per litre and delayed a further 3p of rises. He had previously touted the idea of a fuel “stabiliser” to smooth fluctuations in oil prices. He gave up that plan. Instead, he will raise taxes...


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