Andy Burnham is being urged to follow Ireland and cut fuel duty amid warnings over rising energy costs and growing pressure on household budgets this autumn and winter.
The call has come from the SNP after the Irish Government moved to abandon plans to restore full fuel excise duty, as prices at the pump continue to climb.
Scotland has the UK’s highest fuel prices
Scotland has the highest fuel prices in the UK, according to a survey published last month.
In Dublin, ministers had planned a phased re-introduction of full excise duty fuel costs between September 1 and the start of December. But the Dail, the Irish Parliament, was recalled on Friday from its summer recess for an emergency meeting to allow TDs to vote for the government’s plans to abandon the re-introduction – and extend the tax cut.
The move will mean a cut of 32 cents per litre on diesel and 27 cents per litre on petrol, alongside a €750 million support package to help families with the cost-of-living crisis. Reports have suggested the cost of keeping the cuts to excise could be around €100m a month to the Irish Government.
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- Winter energy price cap to rise 4%
‘UK pump pricing is back to its worst’
Meanwhile, petrol prices in the UK have continued to soar and are now at their highest levels since the beginning of the war in Iran.
Graham Leadbitter, energy spokesman for the SNP at Westminster, called for the Prime Minister to follow the Irish Government’s example and intervene to bring down prices for struggling consumers.
“Andy Burnham’s promise to cut the cost of living already looks bust – the UK Government’s failure to act means families are set to be hit with higher prices at the pumps this September, even higher energy bills come October and food prices soaring ahead of Christmas,” he said.
“Burnham promised better – but endless TikTok videos from Downing Street will do nothing to put money in people’s pockets or fix Westminster’s economic doom loop.
‘Higher prices and lower living standards now define Brexit Britain – meanwhile, in comparison, our neighbours in independent Ireland can use their economic success to help their citizens when they most need it.”
He added: “In energy rich Scotland filling up the tank should not mean emptying your bank account. The fact is that Scotland has the energy, but Westminster is setting the price and that reality will never work for our people.
“If Westminster will not act to cut fuel and energy bills, then they should get out of the road for an SNP government that will. And the best way to ensure that these powers are in Scotland’s hands is with the fresh start of independence. That would mean we could take real action to help people and bring down prices, just like other independent European countries like Ireland.
“Scotland is an energy superpower and with the fresh start of independence we can make that energy work for us, bring down electricity bills and lower prices at the pumps.”
Mr Leadbitter’s call follows a week that saw confirmation that the energy price cap will see another 4% increase in October, meaning a typical household will now pay £1723 a year for their energy, up £60 from the EPC rate on July 1 this year, and up £309 from the EPC when Labour came to power in July 2024 when it was £1414.
The SNP pointed out that while Labour promised they would reduce bills by £300 during the UK general election in July 2024, energy bills are now £609 higher than it pledged voters.
UK petrol prices are at their highest level since 2022, with the average cost of petrol reaching 161.6p a litre, while diesel costs an average of 183.4p a litre, according to the AA breakdown company.
The last time the petrol price was so high was in November 2022, when it soared in the aftermath of Russia’s invasion of Ukraine.
Luke Bosdet of the AA said the rise in petrol prices showed that “UK pump pricing is back to its worst”. It is “too often overpriced and uncompetitive, with too many communities denied road fuel at a reasonable price”, he said.
The UK’s competition regulator told fuel retailers this year that it would step up its monitoring of pump prices amid concern over profiteering as the US war with Iran drives up wholesale costs.
Before the US-Israeli attack on Iran in February, Brent crude – the international benchmark for oil prices – traded at about $72 a barrel. It hit a peak of $126 a barrel in April, before dipping to $71 at the start of July on hopes of a peace deal. It now trades at $89.63.
The Competition and Markets Authority (CMA) found this summer that many petrol stations were too slow to pass on falls in wholesale energy prices to their customers.
A UK Government scheme called Fuel Finder allows drivers to compare the cost of fuel offered by petrol stations across the UK.
Earlier this month the CMA said it had sent out more than 1,000 warning letters to retailers who had failed to share their prices with the Fuel Finder service.
An analysis by motoring organisation the RAC, published earlier this month, found that a litre of unleaded petrol in the UK was 161 pence, compared to 157p in the Republic of Ireland; while a litre of diesel was 182p in the UK compared to 163p in Ireland.
A Treasury spokesperson said: “The Chancellor is fully focused on his priorities to boost business, help with the cost of living and support people in every postcode, underpinned by fiscal discipline and a commitment to meeting the fiscal rules with a buffer against uncertainty.
“The OBR will publish its updated forecast alongside the Budget in October and we will not comment on rumour, speculation or proposals about its contents ahead of then.”