Fuel stabiliser a no-goer
30th September 2010, Page 7
30th September 2010
Page 7
Page 7, 30th September 2010
— Fuel stabiliser a no-goer
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THERE IS NO cash for the Treasury to support a fuel-price stabiliser, according to a study released by the Office for Budget Responsibility (OBR).
The Treasury had asked the
OBR to produce a study over the summer looking at the effect of oil price fluctuations on the public finances, and examine options for the design of a fair fuel stabiliser.
The OBR study says temporary increases in oil prices have virtually no impact on the public finances. It adds that any tax revenue rises derived as a result of a growth in fuel prices would be offset by a fall in demand for fuel and for goods and services in the wider economy.
As a result, it concluded there will be no money available for a stabilising cut in fuel duty.
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Office for Budget Responsibility