THE Miles Consultancy, the fuel and mileage specialist, is warning that falling oil prices could lead to the Government creating a fuel tax trap for road users.

Planned fuel duty increases might have been ruled out before the general election next May, but above-inflation tax rises are likely to hit later in 2015.

This is because oil prices fell below the $75 per barrel benchmark, thus triggering these increases under the Fuel Price Stabiliser regime, which was introduced by the Government in 2011.

Paul Jackson, managing director of TMC, said: “Reviving the duty escalator would be a huge gamble by the next government. It would be a bet on oil prices staying low, thus offsetting the negative impact of higher tax on economic growth.

“But global oil supply remains precarious despite the current boost given to US domestic production from fracking.

“Even a modest uptick in world demand for oil will quickly send the price back up again. Raising fuel duty risks hitting fleets with a double-whammy.”