Tory MPs have warned Rishi Sunak that raising fuel duty by 12p would be ‘political suicide’ with Britons already suffering with the cost of living crisis.
The prime minister has been examining ways to get more money into government coffers and has refused to rule out the hike in the budget in March.
A Centre for Economics and Business Research (Cebr) report warned such a rise could push up inflation by more than 2 per cent, wipe 1 per cent off GDP and cause 31,000 job losses.
Meanwhile, Conservative MPs have raised the alarm fearing that a significant fuel duty rise would dent the party’s chance of regaining ground on Labour who are on course for victory at the next election, according to polls.
Tory MP Craig Mackinlay said: “To raise duty against already overtaxed motorists facing a new assault by city mayors eyeing up drivers as a new cash cow would be economic as well as political suicide and must be opposed.
“I call upon both the Chancellor and PM to say clearly now that no such rises will be entertained. Motorists have had enough of being easy targets for price gouging and excessive taxation.”
Conservative Andrea Leadsom said: “At a time when families are struggling with the rising cost of living, any rise in fuel duty would be a devastating hit for people trying to get to work, school or just for the weekly shop.”
Drivers this Christmas have been hit with spiralling fuel prices with petrol costing nearly £4 more than last year and almost £15 more for diesel.
The Cebr report predicts inflation would spiral by around 2.3 per cent after the spring budget if fuel duty is hiked by 12p.
The study commissioned by the FairFuelUK campaign group which is warning over the extra pressure being piled on households by the rising costs of running a vehicle.
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A Government spokesman said: “No decisions have been made on fuel duty rates, this will be for March’s budget, to align with the Office for Budget Responsibility’s spring economic forecast.”
