The deal, which scraps tariffs on American bioethanol, could cripple the UK’s green fuel industry by flooding the market with cheap, subsidised US imports.
Tesco, Sainsbury’s, Morrisons and Asda drivers could see expensive fuel prices in the coming months following the UK’s trade deal with the United States, experts have warned.
The deal, which scraps tariffs on American bioethanol, could cripple the UK’s green fuel industry by flooding the market with cheap, subsidised US imports.
Bioethanol is a key component of E10 petrol. Speaking to The Sun, Tom Reid of the Renewable Transport Fuel Association, said: “Scrapping tariffs on bioethanol imported from the US will have dire consequences for the UK bioethanol industry, which will not be able to compete on price against the subsidised American product.
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“If the UK plants were to shut down as a consequence of this, it leaves the UK open to fuel security problems in the future, if, for whatever reason, the US stops exporting bioethanol to the UK.
“But by then the damage will have been done, the UK plants will have been scrapped, and we will have to import the bioethanol from somewhere else, which could potentially be very expensive – and it will be UK motorists who end up paying for it.”
Liberal Democrats trade spokesman Clive Jones told The Sun: “This is a very worrying prediction for motorists who have already been clobbered by the cost of living crisis. The Government must publish a full impact assessment of its deal with Donald Trump, including any extra costs for motorists.”
A government source said: “This is nonsense. As drivers know prices at the pumps have been falling under Labour.
“Petrol prices will not increase as a result of the UK-US Prosperity Deal in fact our landmark economic deal could even have benefits to fuel prices, while also protecting thousands of jobs across the country and driving economic growth.”
the RAC believes the average price of both petrol and diesel should be 4p lower than it is today – around 130p for unleaded, and 136p for diesel. This means drivers are losing out by more than £2 every time they have to fill up.
A full tank of unleaded for a typical family-sized car with a 55-litre tank now costs just under £74 (£73.76), while the diesel equivalent is £77.34.
