IV CONCLUSIONS
60. There is no doubt that some sectors of UK industry
have been and still are concerned about the level of fuel taxation
in the UK. The fuel protests indicated how important an issue
it is for some sectors of UK industry, and for an appreciable
proportion of the general public. We hope that the chaos precipitated
by the last fuel crisis will not be repeated. We trust that the
Government have now sufficiently robust procedures in place to
deal with any future interruption of supply.
61. It is difficult to isolate the effects of fuel
taxation levels from the wider economic conditions within which
industry operates. Fuel costs make up a relatively small proportion
of the costs of UK business overall. Nonetheless, sectors that
are heavily reliant on transport and which are operating under
already tight margins will doubtless feel the pinch. High fuel
taxation levels have no doubt adversely affected some businesses,
but any analysis of the overall impact on business must also take
into account the external environment. We remain to be
convinced that any decline in UK competitiveness in recent times
can be attributed to any significant degree to high fuel taxation
levels.
62. Over and above taxation levels, the price of
motor fuel is heavily reliant on the volatile market for crude
oil. The Minister for Energy told us "we will certainly encourage
everybody to be vigilant about what exactly is happening in the
petrol and diesel markets, so that if there are reduced world
oil prices then the customer should benefit at the filling station".[206]
Given that time lags have occurred in the past between movements
on the world crude oil markets and prices on forecourts, we recommend
that the Government keep a close watch on the relationship between
the price of crude oil and that paid by customers at the pumps,
and identify publicly any companies which fail to fulfil the undertaking
given to Ministers that cuts in duty will be speedily passed on
to customers.
206 Q481 Back
| 
