MPs to debate issue of rising fuel prices

A debate is set to take place in parliament about rising fuel prices after the government received an e-petition featuring more than 100,000 signatures.

The discussion will happen today (November 15th 2011) and is expected to last three hours.

It comes after a public outcry over the coalition's plans to increase fuel duty by 3p a litre in January 2012, pushing the price of filling the average car's tank up by £1.50.

Petrol prices have tripled in the past 20 years and have remained within 3p of the record levels seen in May ever since, which motoring groups say is stunting growth in the economy and causing both ordinary motorists and businesses to struggle.

Although Chancellor George Osborne cut fuel duty by 1p in March's Budget, this will be cancelled out by a duty rise linked to inflation in April 2011 and April 2012.

The government is now being urged to consider a price stabiliser, with backbench MP Dave Watts suggesting reversing January 2011's rise in VAT to decrease fuel prices by 3p a litre.

In a letter to the Chancellor, the AA claims the coalition should use the Consumer Price Index for fuel duty considerations, not the Retail Price Index (RPI), to end the "vicious circle" of fuel tax pushing up RPI, which then causes more inflation that leads to another duty increase.

"The AA firmly believes that business and households should be given a break ... The private car is, for most people, a necessity not a luxury. It is their means to a job, health care, doing the shopping, visiting relatives and friends and also for improving the quality of their lives," the motoring organisation said.

Use the Myfinances.co.uk comparison tables to keep the cost of gas and electricity lower this winter and check out this petrol price checker below to find the cheapest place to fill up in your local area