Fleet News

Fight is on to stop cheaper diesel duty

THE Government has pledged to fight European plans for a harmonised duty rate for diesel fuel that would dramatically lower diesel pump prices.

The UK has the highest diesel prices in Europe due to the high duty, a situation that has caused considerable unrest among fleets and commercial vehicle fleet operators.

The European Commission wants to see diesel duty harmonised at E350 per 1,000 litres by 2010, compared to the equivalent UK rate of E746 per 1,000 litres. But Paymaster General Dawn Primarolo MP said: 'If this proposed duty rate were applied now, it would cost at least £2 billion a year in revenue. The Government will make it clear that we see no reason for a harmonised duty rate.'

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