FUEL duty in the UK should be cut immediately, according to the Kent branch of the Institute of Directors (IoD).

The IoD has called on the Government to consider the move as a matter of urgency and the cut should then remain in effect until oil prices return to the levels of earlier in the year.

Alyson Howard, chairman of the Kent branch of the IoD, said: "Our members, the people who are running businesses across the county, are being badly hit by the dramatic rise in their fuel bills.

"This does not only hit transport costs, but with winter coming it will have a very heavy impact on heating bills.

"These pressures are likely to significantly erode profitability at a time when many businesses are already gloomy about their commercial prospects.

"We urge the Chancellor to impose a temporary cut on fuel duty and at the same time extend the current freeze throughout 2006.

"It is the size of the rise in such a short timescale that is hurting businesses the most; a temporary cut may be a way of easing some of that pain and allowing our members time to adjust to what may be a prolonged period of high oil prices."

The IoD has also called on fuel protesters to consider the impact on business that blockades of refineries could have.

"Although we understand the frustrations of the fuel protestors, we would urge them to avoid causing the widespread disruption seen in September 2000," added Mrs Howard.

"Those protests cost British business around £1 billion in lost output. That could be catastrophic for many businesses in today's economic climate."