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Will the UK government reduce petrol tax?

As Alistair Darling goes public on his concerns regarding the rising price of oil many people are starting to wonder if the government will at some point reduce the inflated tax on petrol. It is no secret that the vast majority of what you pay on the forecourts for your petrol goes to the government under the guise of tax - something which continues to rise on an ongoing basis. Will the government be brave enough to reduce the tax on petrol in the short to medium term?

Unfortunately, even if the UK authorities wanted to reduce the tax on petrol there is almost certainly no way in which they could justify this. Petrol tax is a significant income stream for the UK authorities and with income tax and business tax income significantly down because of the recession, there is no way they can afford any tax giveaways. Whether we will see something of short-term initiative or short-term gesture, as we saw with VAT, is debatable but the UK authorities are literally caught between a rock and a hard place.

The only hope for the UK population, if the price of oil continues to rise, is the fact that we are nearing a general election and politicians from all sides will be looking to curry favour with voters.

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