Monday, January 17, 2011
The fair fuel stabiliser
Posted by David Smith at 08:45 AM
Category: Thoughts and responses

Why is a fair fuel stabiliser, a Conservative policy before the election and now back in the news, not a good idea? Because, according to the Office for Budget Responsibility, it is a myth to say that the government gains from a temporary (or permanent) rise in oil prices. Thus, there is nothing to offset through lower excise duties. The government could cut such duties but it would need offsetting tax increases elsewhere. Its press release from August is here.