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Oil tops $100 mark amid fears that Egypt crisis will lead to the closure of the Suez CanalFeb 1, 2011
By James Chapman - Mail Online
Yesterday the Prime Minister went far further than he had previously by insisting that the Treasury must find a way to reform the tax system so that fuel duty goes down when oil prices go up and vice versa.
He said he wanted a system where ‘we share the difficulty of that with the motorist’. ‘I think that’s fair,’ he added. ‘That’s what we are going to try to do.’
Mr Cameron’s comments are the strongest signal yet that a fuel stabiliser will be unveiled in the Budget, due in March.
The Prime Minister has now voiced support for it on so many occasions that it will be a major embarrassment if Chancellor George Osborne fails to produce one.
Last month Robert Chote, head of the office of Budget Responsibility, described the system as unworkable.
However, ministers recognise that they must respond to public disquiet about soaring petrol prices and head off threatened fuel protests by hauliers.
Currently, fuel duty is planned to rise every year by at least the rate of inflation, regardless of what happens to the price of oil.