Calls to cut the tax on fuels

[Tony]

As inflation reaches a 15 year high of nearly 5pc, there have been calls for the Gorernment to cut taxes on fuels.

The rise in taxes on fags http://www.eforecourt.com/UBB/smoke.gif has also taken a toll on inflation. Apparantly if we didn't have the hugh hike in the January budget, then inflation would be at 3.4pc.

Average petrol prices are 24pc higher then in April last year, home heating oil is up 48pc, and bottled gas is up by 8pc. The average price per litre is running at 70p, and 40p of that is tax :eek: .

Petrol prices are due to increase again in the next few weeks or so by almost 10p a gallon, due to the weekness of the Euro to the dollar and the price per barrel at around $28. This will add further pressures to inflation.

So will Charlie McCreevy see fit to reduce petrol taxes?

[Tony]

In a recent article Bloxham Stockbrokers have described the latest inflation figures as "much worse than expected". They forecast an annual average inflation rate of around 5.2pc, and are calling on the government for some "quick fire measures", such as cutting VAT on services and excise duties on petrol and alcohol. Can’t say that many people would disagree either.

[WhipLash]

McCreedy is a very coy man. He’ll rarely back down on any decisions, as IMHO he hates to admit he was wrong in the first place. Its hard to see him REDUCING any of his (the exchequers) income, but I suppose theres a lot of heat on him at the moment about inflation, both at home and from within the EU. I’d say he’s starting to feel a bit hot under that white collar of his. Maybe a small reduction on the VAT on fuel would work in his favour. It would help reduce the level of inflation, and keep the disgruntled motorist happier for a while longer.