§ I now come to some major proposals. While budgeting for a large surplus I yet wish to finance certain important changes which the Government conceive to be in the interest of those large sections of the people, who, by their increased efforts, can increase national production or who have reached the end of their life's work or have been or are incapacitated or hindered by disability, sickness, injury or unemployment.
§ I have only one tax increase to propose and that is on oil. Since the main objective of the Budget is to relieve our balance of payments difficulties I must pay particular attention to a scarce product which costs us foreign exchange. 1295 As I said in January, I have considered and rejected petrol rationing. I propose instead to raise by 7½d. a gallon the Customs duty on petrol and other light oils and on heavy oil used as road fuel. The duty at present stands at Is. 10½d. a gallon. The increase will apply to any oils of this kind which become chargeable with duty from 6 p.m. today. The retail price of petrol, at present selling at 3s. 7½d. a gallon, will thus be raised to 4s. 3d. a gallon. The new maximum prices, including the extra duty, will become effective at the garages after midnight tonight. I have a good deal more to say so I hope that hon. Members will not hurry out.
§ Indigenous light oils and heavy oils used in road vehicles are already given a preference of 9d. a gallon. It is proposed to continue this preference. The duty on indigenous oils of this category will, therefore, be raised by 7½d. a gallon at the same time. There will be corresponding adjustments in the rates on petrol substitutes and power methylated spirits. The extra revenue from this change is estimated at £66 million in a full year and the same amount in 1952 to 1953.