The Retail Motor Industry Federation is urging chancellor of the exchequer, Gordon Brown, to reconsider fuel duty in his pre-budget statement, due next week.

  "Any increase in fuel duty impacts immediately on all businesses and the effect can stifle investment and lead to a loss of demand," says RMI chief executive Matthew Carrington in a letter to Brown. "The current fuel duty levels are a considerable burden on both business and the consumer.

"The most recent rise in tax on LPG led directly to a drop in residual values of LPG vehicles. Such action is a direct disincentive to potential customers. It is notable that fleet buyers do not choose LPG vehicles because of the uncertainty of residual values of the vehicles," Carrington told Brown.