Perth and North Perthshire MP Pete Wishart has been visiting independently-run fuel stations in his constituency to find out how rising costs are affecting their businesses.
A VAT increase to 20%, coupled with a fuel duty rise on New Year’s Day, has left motorists and businesses begging for relief.
The average price of a litre of fuel in Scotland has risen to £1.24 for unleaded and £1.28 for diesel, but many communities particularly in rural areas pay significantly more.
There are suggestions Chancellor George Osborne could cut fuel duty as much as 5p a litre after the budget in March, but meantime rising prices are hitting pockets hard.
“My tour around independent filling stations has not just been about checking out prices around my constituency,” Mr Wishart said. “I wanted to speak to the people who run these businesses and to hear first hand from them about the impact tax rises are having on them.
“I found that higher prices, yielding reduced profits, was the answer to that question and that local businesses are struggling to compete with the big supermarket chains, who can seriously undercut their prices.
“Independent filling station operators are the unexpected victims of rising fuel duty.””Tough times”He added, “These are tough times and I can understand the drive to shop around for the best deals for fuel prices, but I would encourage folk to stick with their local filling station.
“They are an important part of the community in rural areas of Perthshire, like Blairgowrie and Balbeggie, and I believe it is far better to keep as much of our money within the local economy as possible, rather than feed the maw of the supermarket giants.”
He added, “The UK Government should commit to cutting duty immediately and introducing a stabiliser straight away.”
A “fuel duty stabiliser” originally proposed by the SNP and then adopted by the government as an as-yet unfulfilled election promise would reduce levies on petrol when prices are high at the pump.
“The recent increase to VAT and fuel duty by the Tory and Lib Dem coalition in London will generate additional pressures for Scottish business and families, and indeed public services, at a time when Scotland is already facing unprecedented cuts in public spending and when economic recovery remains fragile,” Mr Wishart added.
“Every penny of fuel tax and duty heading to the Treasury is a penny out of Scotland’s economy and Scotland’s budget and will add to the cost of goods across the country.”
Photo used under Creative Commons licence courtesy of Flickr user Lee Jordan.