Kerry McCarthy MP, Labour’s Shadow Treasury Minister, said in response to news that the price of unleaded petrol has hit a new record of 130p per litre:
“Everyone knows that the current turmoil in the Middle East and North Africa is having an impact on the global price of oil. It’s vital that Ministers work with their international colleagues to do everything they can to ensure stability in the supply of oil over the coming weeks and months.
“But here in Britain the Conservative-led Government has made things worse with its VAT rise, which has added nearly 3p to the cost of a litre of petrol.
“George Osborne should take immediate action to help hard-pressed families facing record prices at the petrol pumps by reversing the VAT rise on petrol –using the extra £800m from the bank levy this year.
“And in the Budget George Osborne should look again at the annual fuel duty rise due in April. The last Labour Government often postponed planned duty increases when world oil prices were on the up, as they are now.
“But, the most important thing George Osborne can do to ease the pressure on families on low and middle incomes is to urgently get a plan for jobs and growth. Getting the economy moving again and more people into work is the best way to get the deficit down and ease the squeeze on families.”