Petrol price cut attacked as 'bribe'

Protesters demanded a 2p cut in fuel duty last year

Motorists are set to enjoy a short-term cut in unleaded fuel duty from Budget day on 7 March.

It will last until 14 June and match the cut of at least 2p a litre in ultra-low sulphur petrol (ULSP) signalled by Chancellor Gordon Brown last November.

No one will be taken in. This won't buy off the protests

Michael Portillo

The move has been prompted by supply delays that mean not all motorists will have access to ULSP by Budget day.

But the Conservatives have accused the government of panicking while the Liberal Democrats called the move a "a bribe to pacify motorists".

It comes after it emerged that Mr Brown's original prediction that motorists would be able to buy ULSP "using any petrol station in Britain" would be delayed.

At a meeting with ministers on Wednesday morning the major oil companies said they were on track to meet their target to supply all their filling stations with ULSP by the end of March.

But during discussions with independent retailers it emerged they would need longer to supply all their 5,000 outlets, many serving remote areas.

Financial Secretary to the Treasury Stephen Timms told a news conference announcing the proposed cut: "One of the reasons we are doing it is to ensure there is no competitive disadvantage for independent retailers."

The Conservatives have attacked Mr Brown's fuel policy

He described it as a "sensible measure" which would "guarantee that all motorists would benefit from a cut in duty on Budget day".

"The government's objectives are to ensure that everyone should be able to share the environmental benefits of ULSP, and the benefits of the duty cut associated with it," Mr Timms said.

"It is in the whole country's interests that these objectives are achieved and achieved as smoothly as possible."

But shadow chancellor Michael Portillo said it was a rushed announcement which showed the government was in "an unholy mess".

"Labour's stealth taxes are increasingly unpopular. Gordon Brown is a high-taxing chancellor.

"He is against cutting taxes and only talks about tax cutting before general elections.

"The muddle continues. Now we're promised a reduction for two months which happens to cover the general election period."

'Pre-election stunt'

Liberal Democrat transport spokesman Don Foster said: "This cut is plainly a pre-election stunt. It is a bribe to pacify motorists."

The cut was "opportunism" and "intended to see the government through an election period".

It was in his Pre-Budget Report three months ago that Mr Brown indicated he was prepared to cut the duty on ULSP - which has already been reduced by 1p since October - by a further 2p, subject to consultation.

It was part of a package drawn up by the chancellor in the wake of widespread fuel protests last year that shook the government and caused widespread travel chaos.

Many commentators viewed the measures as an attempt to meet demonstrators' concerns without appearing to give too much ground.

Mr Brown said at the time that he expected ULSP to account for 100% of the market this year.