Hope of petrol price cut for motorists

Fuel prices could be cut under government plans to share the proceeds of rises in the value of oil, David Cameron hinted today.

The Prime Minister said he was looking at the so-called fuel price stabiliser to help the "hard-pressed motorist" ahead of the Budget in March.

"I think we can make some progress on this and I want to give the motorist a fair deal, a sense that it's not a one-way street," he said on a visit to the North-East. Mr Cameron spoke out as figures showed that the higher cost of oil would give the Treasury a £2billion windfall from extra tax revenues this year.

Earnings from North Sea oil revenue will rise to about £12billion and the VAT increase has also put up the price of a litre.

"What matters to the Treasury is that they get the revenue they need to pay the budget and if there's any extra money they could share it," Mr Cameron added.