The double whammy of the VAT and fuel duty increase has placed pressure at the pump. Coupled with the spike in crude oil as a result of the Trans-Alaska Pipeline System, fuel prices are set to increase further in 2011. The price of crude has risen from less than $40 per barrel to more than $90 over the last two years and many are predicting it could break through the $100 mark within months.
Hauliers across the UK have voiced their opposition to the increase in fuel prices. Plans are being made for a campaign to halt the rising petrol duty. This would mean Government would face pressure from students, the public sector and the transport industry.
President of the AA, Edmund King, stated ministers needed to act immediately to cancel a third proposed fuel tax increase planned for April.
“The government can put pressure on Opec to increase the production of oil, as we saw Gordon Brown do in 2008, but it also needs to scrap plans for the April increase of 1p per litre plus the price of inflation. That was conceived before the latest VAT increase and is totally unsustainable.”
2011 could see a blockade similar to 2000 or 2008 and will no doubt be felt across the UK.