PM looks to stabilise fuel

SHARP fluctuations in the price of fuel could be brought to an end under plans being considered by David Cameron.

The Prime Minister is looking at pegging fuel tax to oil prices in an effort to ease fuel pump prices for consumers.

Cameron had previously proposed a “fair fuel stabiliser” when his party was in opposition three years ago, sparking criticisms from Labour over its costing as well as being denounced by the Lib Dem’s Vince Cable.

Speaking at a Caterpillar plant in Leicester yesterday, the PM said the recent rise in oil prices, compounded by the 2.5 per cent VAT increase, had been “painful and difficult” for motorists.

He said he was “working with the Treasury” to look at ways in which the government could “share the risk of higher fuel prices with the consumer.”