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| Tories propose fuel duty changes | Tories propose fuel duty changes |
| (10 minutes later) | |
| The Conservatives are proposing changes to the way fuel duty is calculated which they say would let government "share the pain" of rising prices. | |
| Shadow chancellor George Osborne told the BBC the party was looking at plans to cut fuel duty when oil prices rise and increase it when prices fall. | Shadow chancellor George Osborne told the BBC the party was looking at plans to cut fuel duty when oil prices rise and increase it when prices fall. |
| He says if was introduced in March, fuel would now be 5p a litre cheaper. | |
| Fuel duty is due to rise in October but there has been speculation it will be delayed due to soaring oil prices. | Fuel duty is due to rise in October but there has been speculation it will be delayed due to soaring oil prices. |
| Prime Minister Gordon Brown told senior MPs last week the 2p-per-litre rise would be looked at "very, very carefully" over the next few weeks. It has already been delayed once due to uncertainty over fuel prices. | Prime Minister Gordon Brown told senior MPs last week the 2p-per-litre rise would be looked at "very, very carefully" over the next few weeks. It has already been delayed once due to uncertainty over fuel prices. |
| 'Drop hints' | 'Drop hints' |
| But Mr Osborne told BBC One's Andrew Marr programme: "We are proposing a totally different way of doing fuel duty. | But Mr Osborne told BBC One's Andrew Marr programme: "We are proposing a totally different way of doing fuel duty. |
| "Under the current system you wait for Gordon Brown to drop hints at select committees or Alistair Darling to come on this programme to make hints about what he may or may not do with the 2p. | "Under the current system you wait for Gordon Brown to drop hints at select committees or Alistair Darling to come on this programme to make hints about what he may or may not do with the 2p. |
| Governments should be providing action and leadership and we are getting inaction and no leadership from the government at the moment George OsborneShadow chancellor | Governments should be providing action and leadership and we are getting inaction and no leadership from the government at the moment George OsborneShadow chancellor |
| "Not only is that an insult to families who want some clear direction from the government but it is also extremely destabilising for the public finances." | "Not only is that an insult to families who want some clear direction from the government but it is also extremely destabilising for the public finances." |
| He said the consultation process on a "fair fuel stabiliser" would begin on Sunday and conclude by the end of the year when the party would come up with a fully worked-out proposal. | He said the consultation process on a "fair fuel stabiliser" would begin on Sunday and conclude by the end of the year when the party would come up with a fully worked-out proposal. |
| "What this would mean is that when the price of oil goes up, fuel duty comes down to help families, but the quid pro quo is that when the price of oil falls the duty goes up," said Mr Osborne. | "What this would mean is that when the price of oil goes up, fuel duty comes down to help families, but the quid pro quo is that when the price of oil falls the duty goes up," said Mr Osborne. |
| "So government is sharing the pain of rising oil prices, but the government is also sharing the gain when oil prices fall." | "So government is sharing the pain of rising oil prices, but the government is also sharing the gain when oil prices fall." |
| Record oil price | Record oil price |
| If the system had been introduced in the 2008 Budget, fuel would currently be 5p cheaper, the Tories said. | |
| They calculate that under their system, drivers would save up to £3.50 on filling up a Ford Mondeo, or £2.60 for a Vauxhall Astra. | |
| Mr Osborne added: "Governments should be providing action and leadership and we are getting inaction and no leadership from the government at the moment." | Mr Osborne added: "Governments should be providing action and leadership and we are getting inaction and no leadership from the government at the moment." |
| The AA welcomed the proposals - saying they had proposed a similar system in January. | |
| President Edmund King said: "The government needs to review fuel duty as the price of a barrel of oil has doubled in just 12 months. | |
| "The government should scrap the 2p per litre increase threatened for October and introduce measures to reduce the fuel pump pain for families, car-dependent motorists and hauliers." | |
| Last week, lorry drivers held a second demonstration in London demanding cheaper diesel and the price of Brent Crude oil hit a record high of $146 (£74) a barrel for the first time in London. | Last week, lorry drivers held a second demonstration in London demanding cheaper diesel and the price of Brent Crude oil hit a record high of $146 (£74) a barrel for the first time in London. |
| The prime minister was pressed on the issue of the 2p rise - due to come in October - during questioning by the chairmen of 30 Commons committees last week. | The prime minister was pressed on the issue of the 2p rise - due to come in October - during questioning by the chairmen of 30 Commons committees last week. |
| He told them it was a decision for the chancellor, but said he would take into account factors like the prices of fuel and their impact on the economy. "I'm not going to make a forecast but it's clearly a matter that will be looked at very, very closely over the next few weeks," he said. | |
| He added: "I think you will find that in most years since 2000 that the duty has actually been frozen." | He added: "I think you will find that in most years since 2000 that the duty has actually been frozen." |