As if we don't pay the goverment enough already!

Key points

• Motorists to be hit in pocket over new petrol tax fiasco• Lower-taxed fuel may not be available on nationwide basis for at least a year• Oil prices continue to soar generally

Key quote"No way will sulphur-free be available from September onwards. The big players like Shell and Esso will be bringing it in throughout 2005." - DTI spokeswoman.

Story in full MILLIONS of motorists are to be hit by a new fuel tax in September because government plans for switching Britain to sulphur-free petrol have fallen into disarray.

Gordon Brown, the Chancellor, is facing a furious backlash when drivers learn they are unable to avoid his tax hikes because the low-tax fuel he promised in the Budget is simply not available at petrol stations.

It is also forecast that the Chancellor will collect £6.5 million of extra tax every day from the North Sea oil industry - as a result of soaring oil prices which are driving up the cost at the pumps worldwide.

Mr Brown announced the 1.9p-a-litre tax increase in his last Budget - but he explained that motorists who objected could simply avoid it by choosing sulphur-free petrol which would be available by September.

However, The Scotsman has learned that the lower-taxed fuel will not be available on a nationwide basis for at least another year. Nevertheless, the Treasury still intends to impose the new tax.

The Treasury yesterday seemed under the impression that its deadline will still be met. "It will only affect those who don't choose sulphur-free, and the vast majority will be able to receive this in September."

This was directly contradicted by the Department for Trade & Industry. "No way will sulphur-free be available from September onwards," said a DTI spokeswoman. "The big players like Shell and Esso will be bringing it in throughout 2005."

The UK petroleum industry also said that complications make it almost impossible for the deadline to be met.

"It is very unlikely that the whole of the UK will have switched to non-sulphur by September," a spokesman said last night. "There are logistical problems involved in converting refineries that mean a lot of companies will be really pushed to make the change in time."

When challenged about the hold-ups, the Treasury said the timetable for imposing the 1.9p-per-litre tax has already moved from April to September - and will not be moved again.

"We made our calculations based on assurances from the oil industry," said a Treasury spokesman. "Whether or not these commitments are met is a matter for the oil industry."

By: FRASER NELSON AND JAMES KIRKUP -- 13-May-04

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