Starmer's cost-of-living adviser calls for fuel duty cut extension

Starmer's cost-of-living adviser calls for fuel duty cut extension7 minutes agoShareSaveAdd as preferred on GoogleIan AikmanEPAThe prime minister's cost-of-living adviser has said the government should consider extending the fuel duty cut, after a rise in petrol prices caused by the US and Israel's war with Iran.Lord Walker joined calls for Sir Keir Starmer to keep the 5p cut in place past September, when it is scheduled to expire after more than four years."I think given where we are, we do need to be thinking and talking about extending it or enlarging it," the Labour peer told BBC Radio 4's Today programme on Friday.Sir Keir has previously said the planned rise would be kept "under review in light of what is happening in Iran".The reduced tax rate for petrol and diesel was introduced by the previous Conservative government after Russia's full-scale invasion of Ukraine pushed prices up in 2022.Fuel costs have spiked again after Iran effectively blocked the Strait of Hormuz in response to attacks from the US and Israel. About one fifth of the world's oil and gas passes through the vital shipping lane.Lord Walker, who is also the executive chairman of Iceland supermarkets, noted that the Australian government had recently "taken a 14p litre cut to their fuel tax".He also suggested there might be a case to be made for bringing down the rate of fuel tax in the UK to reduce costs for businesses and consumers.Countries are responding to the energy crisis caused by war in the Middle East in a variety of ways. Ireland has cut taxes on petrol and diesel, Australia has halved fuel duty for three months and Slovenia has become the first EU member state to introduce fuel rationing. Meanwhile, Egypt has told shops, restaurants and cafes to cut energy use by closing early.Fuel rations and free buses: How countries are responding to rising oil pricesOn Wednesday, Sir Keir said that dealing with the economic consequences...