'Cut fuel duty' plea after fall in retail sales as the cost of petrol soars by 16% in a year to eat into spending power
The soaring price of petrol is being blamed for causing consumers to slash their spending in shops.
Petrol rose 16.4 per cent in the three months to the end of March compared with the preceding three months.
Store sales fell by 1.4 per cent in the three months to March over the preceding quarter, said the Office for National Statistics. It was the first quarterly drop since 2013.
Brian Madderson, chairman of the Petrol Retailers’ Association, will this week write to Chancellor Philip Hammond urging him to cut fuel duty on petrol and diesel by 3p per litre from its current 57.95p.
Transport trouble: The soaring price of petrol – which has shot up by 16.4 per cent in the last year – is being blamed for causing consumers to slash their spending in shops
Madderson said: ‘We will tell the Chancellor that the increase in fuel prices over the past year has taken £6.3billion out of consumers’ pockets which would otherwise be spent in high street shops. It is an extraordinary imposition and brake on retail activity.’
Petrol has risen in price to 117.5p per litre, up from 106.4p this time last year. Diesel is 120.3p per litre, up from 106.9p last year.
The fall in sterling against the dollar since the referendum has contributed to the rise in prices with sterling down 11 per cent over the year.
Fuel is traded in dollars so the fall in the pound has made it more expensive for British retailers.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Paul McCartney's psychedelic Wings 1972 double-decker tour bus
- German car giant BMW has released the X2 and it has gone electric!
- MG unveils new MG3 - Britain's cheapest full-hybrid car
- Iconic Dodge Charger goes electric as company unveils its Daytona
- How to invest for income and growth: SAINTS' James Dow
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Mini unveil an electrified version of their popular Countryman
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- How to invest to beat tax raids and make more of your money
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- Bereaved families paid a record £7.5bn inheritance tax...
- Middle class shoppers flock back to Ocado... but Asda...
- THG sales accelerate amid strong demand for beauty products
- How do I claim for pothole damage to my car on a private...
- AB Foods shares soar as Primark owner eyes 'significant...
- Petrol surpasses 150p a litre - cost of filling up is now...
- Thames Water customers face huge increase in bills
- Electric Range Rover revealed during Arctic Circle...
- Our friends wriggle out of paying their fair share on...
- UK grocery price inflation falls for 14th consecutive month
- BUSINESS CLOSE: FTSE 100 hits new record high; UK...
- JD Sports to buy US sportswear retailer Hibbett for £899m
- FTC sues to block Coach owner Tapestry's $8.5bn takeover...
- Are you a backseat driver? The 20 telltale signs you're a...
- Boomtime for businesses as the UK economic recovery is...
- Ithaca Energy to join forces with Italian oil major in...
- Share sell-off to end 'sorry tale', says NatWest chairman
- Tesla to lay off more than 6,000 staff as Elon Musk's...