Van Drivers can rest assured that complexity of Fuel duty stabiliser is a myth, FSB says

Savannah Selle
February 08, 2011

Van insurance holders will be pleased to hear that the fuel duty stabiliser is simple and affordable, a new report shows.

The need for cheaper/stable petrol prices is becoming more crucial as it is expected the impact on small businesses will result in price increases, pay freezes or even staff being laid-off.

According to the Federation of Small Businesses (FSB), introducing a fuel duty stabiliser would provide many businesses with greater certainty. It will stabilise the cost of fuel and allow them to factor in fuel costs as they plan for the future.

Critics have said that implementation will be too complicated, expensive and bad for the environment but the FSB can reveal this is not the case.

A fuel duty stabiliser is a mechanism that will adjust fuel prices in order to alleviate the impact of oil price rise shocks on pump prices. By basing the stabiliser on the oil price cycle, the level of fuel duty could be calculated against a trend price for oil, therefore setting the level of the stabiliser would be straightforward: “fuel duty would be X pence per litre minus a proportion of the difference between the current oil and trend oil price.”

John Walker, National Chairman of the FSB, said:

“A fuel duty stabiliser would give the UK’s five million small businesses the certainty and stability they need to factor in fuel costs to their business plans. It is unacceptable that the Government has not delivered on its pledge and now says it is too complex. A fuel duty stabiliser can be easily introduced and must be put in place. Without it, small firms are just going to be left simply trying to survive.”

Small businesses with van insurance will be able to effectively plan and grow their business with a fuel duty stabiliser in place. Support the FairFuelUK campaign that aims to get petrol prices down.

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