The EU have set environmental targets which have meant that fuel prices in the UK are going to rise significantly as a result. It is thought that prices could rise by up to 4p a litre as a result of the change.
The directive which will come from Brussels is part of an energy drive by the EU that is forcing its member states to become more environmentally responsible. In order to meet the targets that are being set by the UK the Treasury are going to have to raise the price of fuel. The directive specifically states that in the next eight years member states are going to have to be powering the transport sector by a minimum of 10% from renewable energy.
The directive has been met with strong opposition in the UK and campaigners have been saying that it is going to penalize motorists. This news is particularly troubling for people when the state of the economy is so bad as it is, people are already struggling to afford fuel and this price rise is going to make things significantly worse.
A representative from the campaign against the directive, FairFuel, is Peter Carroll and he has stated, “We need petrol and diesel in this country to be affordable priced. It isn’t now and this directive is going to make things significantly worse. The duty on fuel needs to be reduced, not raised, and this EU directive is going to be harmful for the economy.
“It is estimated that even if the duty on fuel was cut by just 2.5p a litre the benefits for the economy would be significant. It is thought that this cut would boost growth by around 0.3 percent, and if there was a time for this sort of economic stimulus, it is now.”