The Federation of Small Businesses (FSB) has called for the government to pass on the extra revenue it receives through high oil prices to motorists by cutting the price of fuel.

Accountancy firm Grant Thornton has calculated that for every $4 per barrel that oil exceeds the predicted price, the Treasury receives £1.5m every day and has made £450m in extra revenue in the 50 days since the Budget in March.

It claims deferring the 2p per litre fuel increase due to come into force in November would cost £550m.

But with oil prices expected to remain at over $100 per barrel the FSB believes the government could introduce a scheme where extra revenues are used to reduce prices at the pump.

"The government can do something about the situation," said John Wright, FSB national chairman. "A mechanism which automatically uses extra oil tax revenue to reduce fuel taxes would be an efficient, effective and fair way of delivering some relief to motorists of all kinds."