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Oil bosses 'furious' at Osborne windfall tax

24 March 2011 Last updated at 15:47 GMT

The Chancellor, George Osborne, insists that the surprise £2 billion levy on North Sea oil companies announced in the budget, will not be passed on to motorists.

But oil industry bosses have criticised the new tax, which they say has been imposed so the chancellor can cut fuel duty by 1p, and labelled it short-sighted.

Hugh Pym reports.