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Diesel fuel cards news: Mervyn King blames pump prices for inflation

18 February, 10
Mervyn King has backed the Office for National Statistics (ONS) in telling diesel fuel card users that rising pump prices are behind the increasing rate of inflation.

The governor of the Bank of England was forced for only the third time in six years to write a letter to the chancellor of the exchequer Alistair Darling, explaining why inflation is so far above the expected level.

According to the ONS's monthly consumer prices index, inflation rose to 3.5 per cent in January 2010, driven by record increases in the value of petrol and diesel.

Mr King echoed these comments, citing this reason along with the depreciation of sterling and the return to the 17.5 per cent VAT rate, up from its 2009 level of 15 per cent.

The news will come as little surprise to motorists with diesel fuel cards, who are currently facing pump prices of 113.68p per litre.

It has led the Road Haulage Association to demand a freeze on fuel tax hikes, with its chief executive Geoff Dunning stating: "As far as fuel duty is concerned, enough really is enough."

Posted by Tammy BrooksADNFCR-2675-ID-19624470-ADNFCR

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Diesel fuel cards news: Mervyn King blames pump prices for inflation