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Business groups call for action on fuel prices

Business groups are urging the Government to take action to clamp down on spiralling fuel prices.

The Forum of Private Business (FPB) has called on Chancellor George Osborne to use his forthcoming Autumn Statement to announce a scrapping of the 3p increase in fuel duty planned for January 2013.

Alex Jackman of the FPB said, ‘We would like to hear Mr Osborne announce a freeze on fuel duty for the foreseeable future. The less duty consumers pay on fuel means more money swilling around the economy, and an outright freeze will also provide more stability for small firms to plan ahead for 2013 while encouraging consumers to spend’.

The increase in fuel duty was originally planned for August 2012, but was postponed by the Chancellor.

However, a recent move by Labour to delay the increase until at least next April was defeated in the House of Commons.

Motoring group The AA has warned that motorists face a number of different pressures, including a ‘postcode lottery’ of fuel prices, with some drivers facing charges of up to 5p a litre more than drivers who live just a few miles away.