The war in Iran has resulted in a significant rise in fuel prices at the pumps. Of this rise around 50% is a consequence of VAT and fuel duty that risen proportionally as a percentage of the pump price.

The unexpected and unplanned for increase in fuel taxes is estimated by some to equate to a quarter of a billion pounds extra revenue to the Treasury for each month that the impact of the war persists. We believe the Government should fix VAT and fuel duty at a set amount, equivalent to that which was in place prior to the war in Iran, until wholesale prices return to the prices that were in place prior to the war. We believe this would have no significant impact on expected government revenues however would provide some relieve to the consumers of fuel oil.