The Forum of Private Business (FPB) makes its demand as analysts believe that oil prices are likely to sit close to the $60 mark for some time as demand shows little sign of abating.
FPB chief executive Nick Goulding said there is massive concern among small businesses about fuel prices. He said: ‘Many businesses are sweltering in a pressure cooker of rising fuel costs. To ease this intense heat a better method of setting fuel duty would be to link it to oil prices.
‘That way when crude is expensive, duty would be lowered and vice versa. This will mean there is a constant and consistent price at the pump and bosses would know exactly where they stand.
‘At the moment firms are being hit with a double whammy of high fuel duty and high oil costs.’
Goulding added that the Government is raking in huge sums of cash from the price of brent crude, both from its sale and increased forecourt prices.
He said: ‘While the Treasury is making vast sums of revenue from the price of oil it does not need to have a high level of duty too.’
The issue of fuel management is a hot topic. The Government is currently considering its response to a court decision that it must comply with the European Union Sixth Directive, which blocks companies reclaiming VAT on fuel payments they have reimbursed to staff if the fuel is not bought by a VAT-registered company.
In conjunction with fleet and fuel management company Arval, Fleet NewsNet has launched the FuelWise campaign, designed to help fleet decision-makers deal with the impending change.