The Federation of Small Businesses (FSB) have added their voice to the growing chorus of frustration over the recent hike in fuel prices.
In the last month or drivers have seen the cost of unleaded and diesel fuel jump by as much as 10p per litre. That's a lot if you're filling a up an 80 litre tank two or three times a week, which some do. The hike is down to a combination of oil price rises, a fuel duty increase on 1 January and the new 20% VAT rate that arrived on 4 January.
The FSB have reminded the British government of their commitment to introduce a fuel price stabiliser. Quite how it would work has not been spelled out, but in essence the duty would reduce or increase to balance the impact of VAT on oil price fluctuations.
The FSB also point out that in the UK of every one pound spent on fuel, 62p goes to the tax man and only 38p is kept by the supplier. That makes the UK's network of filling stations a massive tax collecting operation.
While other European nations do the same thing, the rate of tax they charge is less. On average for every Euro spent on fuel on the continent, just over half is kept by the supplier with the balance going to the state in taxes.
According to the FSB taxi drivers and hauliers will be 'severely affected' and the increases in fuel costs 'are placing a straing on already hard-hit businesses cash flow'.
Unfortunately, speaking to the BBC this weekend Prime Minister David Cameron has warned that the fuel price stabiliser is a 'difficult issue' and he doesn't 'want to raise people's hopes too far'. That's despite the Conservatives having initially proposed the measure back in 2008.
Economic recovery will, inevitably, push fuel prices even higher as demand for oil increases. This is an issue that won't be going away.
