Dave Thompson MSP

SNP MSP for the Highlands and Islands Dave Thompson has highlighted figures which show that although diesel supplies in Britain are among the cheapest in Europe, the price charged to motorists once Westminster's taxes have been added, make it the most expensive in the EU.

Dave Thompson warned that the UK Labour Government must take account of how its high level of  road fuel taxes are affecting the country's economic recovery.

He noted that the reliance of the Highlands and Islands on transport to import and export goods meant that these high taxes had a disproportionate effect on the economic health on his constituency.

Recent figures from the European Commission's Directorate General Energy and Transport show that diesel in the UK is the most expensive in Europe at 1.23 Euros per litre.  This compares with an EU average of 1.06 Euros per litre.

However when tax is excluded, the price of diesel in the UK drops dramatically and is the second lowest in Europe at 0.44 Euros per litre.  Only Bulgaria is lower at 0.42 Euros  per litre.

The SNP MSP is concerned that the high price of diesel is damaging economic recovery in the Highlands and Islands and the many rural industries, such as agriculture, where diesel powered vehicles play a vital role.

Commenting on the impact of Labour's fuel tax policy the SNP's Dave Thompson said: "The Treasury's tax take on diesel is modern day highway robbery.  It is a national scandal that, in an oil rich country like Scotland, we are paying more than 30p a litre more than motorists in Romania and Bulgaria."

"Key sectors like the haulage industry are reeling from forecourt costs, and Alistair Darling must use his Pre-Budget Report to bring down the costs of fuel.  Another factor that cannot be ignored is how these costs are impacting on the costs of goods in the stores for ordinary households."

"Economic recovery is being slowed by the cost of transporting goods and raw materials and is making the Highlands and Islands as a whole less competitive in critical global markets."

"Here in the Highlands and Islands we have high quality food and drink manufacturers that have to complete with companies elsewhere who can get their goods to market much more cheaply.  The result is slower recovery, fewer jobs, and less money coming into the local economy."

"Our vital haulage industry and the many producers in the Highlands and Islands need all the support they can get and that is simply not happening with this oppressive fuel tax regime."

Notes:

1. Costs of Diesel by EU Member State after tax is applied – Euros per litre – showing UK as dearest:
   
   MEMBER STATE - COST €
   Cyprus - 0.86
   Romania - 0.86
   Bulgaria - 0.87
   Luxembourg - 0.90
   Lithuania - 0.90
   Poland - 0.94
   Malta - 0.96
   Spain - 0.97
   Latvia - 0.97
   Belgium - 0.97
   Estonia - 0.98
   Finland - 0.99
   Greece - 0.99
   Austria - 1.02
   Euro Area 16 average - 1.05
   Netherlands - 1.05
   France - 1.05
   Portugal - 1.05
   EUR 27 average - 1.06
   Ireland - 1.06
   Czech Republic - 1.06
   Slovenia - 1.07
   Hungary - 1.07
   Denmark - 1.09
   Sweden - 1.09
   Germany - 1.10
   Italy - 1.12
   Slovakia - 1.13
   United Kingdom - 1.23

Source: http://ec.europa.eu/energy/observatory/oil/doc/prices/bulletin_with_taxes/2009_11_16_with_taxes_1483.xls

 

2. Costs of Diesel by EU Member State before tax is applied – Euros per litre – showing UK as cheapest:

MEMBER STATE - COST €
Bulgaria - 0.42
United Kingdom - 0.44
Sweden - 0.45
Estonia - 0.45
Belgium - 0.45
France - 0.45
Germany - 0.46
Slovenia - 0.46
Malta - 0.46
Ireland - 0.47
Netherlands - 0.47
Austria - 0.47
Lithuania - 0.47
Latvia - 0.47
Slovakia - 0.47
EUR 27 average - 0.47
Euro Area 16 average - 0.48
Romania - 0.48
Luxembourg - 0.48
Finland - 0.48
Denmark - 0.49
Poland - 0.49
Cyprus - 0.49
Spain - 0.49
Czech Republic - 0.50
Italy - 0.51
Hungary - 0.51
Portugal - 0.51
Greece - 0.52