1. ITV Report

Fuel duty row

The TaxPayer's Alliance (TPA) is ramping up pressure on the government to cut duty on fuel. Together with the Petrol Retailer's Association (PRA) they are setting up stands on 5,000 independent forecourts around the country today to ask motorists to lobby local MP's.

60p in every pound spent on petrol or diesel in the UK goes directly to the treasury.

The UK has the highest tax component of unleaded petrol in the EU.

Jamie Wood owns St Michael's petrol station in Dumfries he explained to ITV Border how the figures break down.

Jamie Wood, Owner St Michael's services Dumfries Credit: ITV Border

"The cost of diesel without tax is currently about 53p a litre. If we add a penny to that to cover our costs and pay wages it goes up to 54p. We currently sell unleaded for just under £1.39 a litre. The rest is all tax.

"I don't support the price rises at all. We were making more money when we were selling fuel for 80p a litre. The margins were healthier and profits higher - if I sold fuel cheaper than I am doing at the moment it would not be worth me opening the doors."

– Jamie Wood, St Michael's Services, Dumfries

The Treasury have defended fuel prices and saythat under the ‘fair fuel stabiliser’ fuel duty only rises when oil prices arehigh.

A Treasury spokesperson said in a statement:

“The government's support has been worth £5.5bn and means that pump prices are 10p a litre cheaper than they otherwise would have been."

– A Treasury spokesperson

The Treasury said it had to balance supporting motorists with the need to cut the deficit.