It comes as other governments across Europe have taken action to cushion the blow of rising fuel costs. Taxes on petrol and diesel have been cut by around €0.30 a litre in Spain (£0.26) and by €0.17 in Germany.
The Liberal Democrats have said that the Government should cut fuel duty by 10p to help drivers.
Daisy Cooper MP says: “While some of our European neighbours are stepping up to protect their drivers, this Government is sitting on its hands and refusing to help the millions of Britons facing rising prices at the pump.
“Millions of people have no choice but to drive to get to work, do the school run or to pick up their weekly shop, and higher fuel prices are not only bad for them but for the whole economy – pushing up business costs and inflation.”
Although the rise in the cost of fuel has slowed over the last couple of weeks, a reduction in prices to pre-war levels appears unlikely in the near future.
“The chance of a significant cut in petrol prices hangs in the balance,” says Edmund King, president of the AA.
“Diesel is looking more hopeful with a 10p reduction on wholesale costs still on the cards. However, such has been the huge leap in its forecourt price since the start of the Middle East conflict, that only reduces the impact by a fifth.”
‘We’re looking at £2 a litre’
For small businesses such as Cole’s, these cost pressures are tough to pass on to customers.
“When you set out your pricing structures where people have already accepted quotes and paid a deposit, we can’t then go back to them for more because fuel prices have gone up,” he says. “You have to swallow that, and it comes out of your profit.”
Business fuel costs can be tax-deductible, but this won’t protect Cole’s profits from rising prices. The father-of-two also owns and uses farm tractors, which run on “red” diesel. This currently costs as much as 135p per litre, up from 60p per litre before the war.
Campaign group Farmers For Action has warned ministers of protests unless the Chancellor cuts tax on red diesel.
The Irish government cut prices at the pump by €0.10 last week after similar protests blocked roads, forcing Dublin to send in the army.
