'Short-term relief' for motor insurance customers

Thursday, 24 June 2010

Short-term relief will be brought to car insurance customers through the emergency Budget which chancellor George Osborne announced yesterday (June 22nd).

There is not going to be an immediate increase in fuel duty charges, meaning motor insurance customers will not see an increase in petrol prices for a while yet.

However, in October there will be a rise of 1p in fuel duty and another increase in January of 0.76p, which will come at the same time as the VAT rise, leading to petrol prices becoming 4.6p higher than now.

The government is going to see whether it can introduce a 'fair fuel stabiliser', as the Conservative party outlined in its pre-election manifesto.

It would work to keep fuel pump prices in line with oil prices, meaning when oil prices increase, taxes would decrease, balancing out the costs motor insurance customers pay.

Shell advised car insurance holders to check their tyres were properly inflated, avoid driving with their windows down and get rid of unnecessary clutter from cars to reduce the amount of petrol they use.

Posted by Rick Malone

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