The price of oil jumped to over 80 US dollars a barrel after the US-Israeli attack on Iran.
The Chancellor has been urged to scrap the proposed hike in fuel duty as concerns have been raised about the conflict in the Middle East.
Rachel Reeves announced last year that the long-held discount in fuel duty would be scrapped from September, with a 1p hike followed by two increases of 2p each in subsequent years.
But following the US and Israeli attacks on Iran at the weekend – which killed the country’s Supreme Leader Ayatollah Ali Khamenei – concerns have been raised about the impact of oil price hikes which could hit consumers at the pumps.
Following the attack, the price of oil jumped to 80 US dollars a barrel, with some analysts suggesting it could rise above 100 dollars.
Speaking ahead of the spring statement, SNP economy spokesman Dave Doogan said: ““With real fears that prices at the pump are now set to soar because of the situation in the Middle East – instead of stubbornly doubling down, the Chancellor needs to scrap her price hike plans before motorists face a devastating double hit.
“Oil prices are already spiking – the last thing motorists and businesses now need is another damaging tax hike from the Labour Party.
“The Chancellor needs to see sense, recognise what is unfolding globally, and immediately scrap her plans to hike prices at pumps.
“Everyone knows that Keir Starmer’s Labour Party has broken their promise to cut energy bills by £300 – it would be another slap in the face for families if Labour made the cost-of-living crisis even worse with a plan that will inevitably increase prices.
“After 14 U-turns from this chaotic Labour Government – scrapping their plans to hike fuel duty is one U-turn motorists, businesses and families right across Scotland would actually welcome.”
A spokeswoman for the Treasury said: “We have extended the 5p fuel duty cut from this month to the end of August to support drivers across the country.”
