People are left with no choice but to sell their cars as average fuel prices in the UK have reached a new record high.
In an interview with BBC Radio 4’s World At One programme, AA President Edmund King said: “The problem we are finding it is not just for businesses, but we did a survey of 15,000 drivers and 2% of those on low incomes are actually having to give up their cars.
“Nearly 27% of drivers on low incomes are having to cut back on their food bills because they live in rural areas they need their car to get to work or they work shifts and there is no public transport.
“So, it’s having a much broader effect across the whole economy and the whole economy in businesses is suffering as a result.”
Mr King explained that the government must cut fuel duty by 10p per litre immediately and introduce a “fuel price stabiliser”.
The AA chief said: “The government cut 5p per litre a couple of months ago and the government gets 20% VAT. So, when the prices are higher, the government gets more VAT. So, at the moment for a litre of petrol, they are getting almost 30.5p per litre.
“One could argue if they cut 10p a litre they are almost gaining that on what they are equalising it and what they gain in VAT as prices have increased over the last year. So, it wouldn’t actually cost too much, but it would actually help the broader economy.”
Yesterday, the Prime Minister predicted that price of oil and gas will remain high for a while to come.
A few days ago, the RAC warned drivers that the average diesel price will hit £2 per litre this summer.