More than half of all drivers intend to reduce their
speed on motorways in order to conserve fuel
and there is a more stable environment for low carbon investment.” When political turmoil in oil-producing states – as we’re seeing now – leads to increases in the cost of crude oil, the government would forego some of the duty. So, for example, if the price of a litre of petrol rises by 5p because the price of crude has increased, the fuel duty would drop by 5p. The fact that the government is back-tracking on this commitment – David Cameron recently said “I don’t want to raise people’s hopes too far because it is a difficult issue” – is not that surprising (politicians aren’t exactly renowned for sticking to manifesto commitments). However, this might not be such a bad thing, as the idea is somewhat flawed. The long-term trend for oil prices is that they will continue to rise, so we could ultimately see the fuel duty eradicated if the cost of petrol rose by 58.95p. The government is never going to accept losing around £25bn in revenue (the 2009 revenue from fuel duty), so a fuel price stabiliser is likely to be a non-starter in the real world of constantly rising oil prices. In the short term, though,
drivers can join the campaign against the 5p increase in fuel duty planned for April 1. If, as petrol retailers are suggesting, the current increase in crude will add another 5p a litre, we’re all looking at a 10p increase in one hit.We could be looking
at £1.50 a litre by summer. The campaign is gathering
pace (see www.fairfueluk. com), with motoring organisations warning the government of its effect on the economy. Edmund King, president of the AA, said the 1 April increase had become “unsustainable”, adding: “Fuel costs are slowing down the economic recovery. If people spend more on fuel they are spending less on goods and services.We need to make fuel affordable in order to keep the economy going.” Our only defence will be
better fuel-saving driving techniques, which it seems motorists are thinking seriously about: according to a Department for Transport study, more than half of all drivers intend to reduce their speed on motorways in order to conserve fuel. But what we really need to
do is reduce our dependency on oil, which is obviously easier said than done. Biofuels aren’t an option: the only thing they fuel is inflated food prices. So it’s time for the car manufacturers to get their act in gear and start building electric vehicles that are a viable and affordable proposition for the general motoring population. Now. But that’s whole other
can of worms, which we’ll address in the next issue of Driving.
Thanks to petrolprices. com and www.oil-price. net for research.
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