FPS calls for fuel duty increase to be scrapped

KNUTSFORD-based Federation of Petroleum Suppliers is joining the call for the government to scrap the fuel duty increase planned for January.

The oil distribution trade association said that as well as delivering heating oil to consumers – many of whom have been identified by the OFT as being in fuel poverty – some of its members also operate independent petrol forecourts.

Chief executive Mark Askew said: “While most people understand that the haulage industry and consumers will be badly affected by this imposition, not many appreciate that independent forecourt operators will also be affected.  Many of these forecourts are in rural areas, providing a lifeline to the local community. But, due to low turnover, any rise in duty has a devastating effect on their cash flow.”

He added that many sites are already struggling to make ends meet and are no longer able to keep their storage tanks full.

“A further hike in the duty rate will undoubtedly result in further forecourt closures. In recent years, these closures have been running at almost 600 a year and there are now only around 8,500 left open.”

The FPS  is the trade association for the oil distribution industry, representing 80% of distributors in the UK from the small family business to the distribution arms of some of the major oil companies.