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Rising Uncertainty Over Future Diesel Prices

The price of diesel could be set to rise as the government considers reversing previous tax cuts executed by Gordon Brown before the 2001 elections, in order to meet new Government air quality strategy. The labour chancellor decreased duty paid on low sulphur diesel by 3p due to their lower carbon performance, in order for the UK to meet 1997 Kyoto Protocol agreeing to cut carbon emissions to decrease greenhouse gases.

Transport secretary Patrick McLoughlin has stated in the London Evening Standard that fuel duty is a concern the government will need to consider due to 40,000 people in the UK dying prematurely every year due to breathing the polluted air. Diesel is set to take the worst hit due to research proving that diesel powered engined emit up to four times more nitrogen oxide and twenty times as many particulates as petrol cars, which can cause lung, brain and heart issues.

Increasing diesel prices are set to be a worry for the road haulage industry due to concerns of decreasing competitiveness for UK businesses with increased taxes reflected in increased prices for customers.