Fuel duty 'damages economy', says Institute of Economic Affairs

Drivers are being short changed at the pumps because of unfair prices set by retailers and "destructive" fuel taxes, according to motoring experts.

A report from the AA on Friday said the wholesale price of petrol dropped by 10p in the past month, yet it was not reflected on the forecourts with drivers saving only 4p per litre.

Meanwhile, the Institute of Economic Affairs (IEA) launched its own fuel report which described the impact of fuel duty on the economy as "immense and destructive".

Dr Richard Wellings from the IEA told the BBC the tax should be abolished in the long term.