High cost of fuel forcing drivers to cut trips

Most motorists are suffering because of soaring fuel prices, says a new report. But those living in the countryside are worst-hit of all.

Almost half of Britain's motorists have been forced to cut back on car journeys because of soaring fuel prices, a new report reveals.

Rural motorists are worst-hit, with almost one third of those living in the countryside saying they will have to cut down further on trips to family members if motoring costs increase again.

Other findings in the RAC Report on Motoring 2011 are that rural motorists are nearly twice as reliant on their cars when it comes to visiting family and friends compared with drivers in urban locations. This is backed by findings showing that for 30 per cent of rural drivers, the nearest bus stop or train station is too far away to be convenient, compared with just three per cent of urban dwellers facing the same problem.

The report says that the financial impact is set to worsen, leaving people who rely on their car feeling "isolated as they can no longer afford their social lives or carry out family commitments". Rising fuel prices are particularly alarming for the 60 per cent of rural motorists who rely on their cars to transport children to school and social activities, and the 39 per cent of urban motorists who do so.

"This year's Report on Motoring shows the tough choices being made by many motorists, with rural drivers hit the hardest as they have little alternative but to use their cars," said Adrian Tink, RAC motoring strategist. "People's ability to live their lives and do the most basic of tasks, such as visit family and take their children to after-school activities, is being threatened – and it looks like it's only going to get worse."

Added Mr Tink: "UK drivers want action from the Government. They already pay the highest duty and tax on fuel in Europe. At the very least, we are calling for fuel duty to be frozen and scheduled inflationary rises to be scrapped. In addition the Government should look again at the fair fuel stabiliser so that increased revenue from high oil prices can be passed back to drivers."

The report shows that nearly one in 10 motorists has already had to give up driving children to school or social activities, with 24 per cent expecting they will have to. Three per cent have given up trips involving family commitments, with 27 per cent fearing they will have to, while seven per cent have stopped driving to work and cut down on social trips and four per cent have cut car trips for food and "essentials".

The RAC Report says rural motorists now feel "backed into a corner", with 64 per cent saying it would be very difficult to adjust their lifestyles to being without a car compared with 36 per cent of urban motorists. Yet 65 per cent of drivers say they will have to "severely reduce" their car usage.

 

Cost of running a car jumps 20% in just one year fuelled by £300 rise in petrol

Drivers are paying at least 20 per cent more to run their cars than they were a year ago, a survey reveals.

Rises in insurance premiums and petrol prices account for the bulk of the increase.

The average running cost is now £3,090 – 21.1 per cent more than the cost on April 1, 2010.

This includes a 30.7 per cent average increase in insurance and a 5.4 per cent rise in servicing costs.

Fuel costs – based on driving 10,000 miles a year in a Ford Focus – also went up from £1,400 to £1,721 a year.

This 22.9 per cent increase comes as oil prices are forced up by unrest in the Middle East, fuel duty increases at home and the recent VAT hike to 20 per cent.

The survey by Sainsbury’s Finance of more than 2,000 adults also discovered that MOT test costs have risen 1.9 per cent, while motoring taxes have increased by an average of 5.1 per cent.

Ben Tyte, head of motor insurance at Sainsbury’s Finance, said: ‘The cost of motoring has soared in recent months as all costs, but particularly fuel prices and insurance premiums, continue to rise.

‘The cost of driving can be kept better in check by shopping around, particularly for fuel and car insurance.’

THE RISING BILLS

Item Now April 2010 Rise

Insurance £815 £623 30.7%

Fuel £1,721 £1,400 22.9%

Servicing £317 £301 5.4%

MOT £55 £54 1.9%

Tax £182 £173 5.1%

Total £3,090 £2,551 21.2%

Earlier in the year, research by the AA found that filling stations were ripping off motorists by failing to pass on the fall in wholesale costs to their customers.

Research found there was a 4.4 per cent dip in prices in Europe – to 121p a litre – at the start of the year.

In Britain, however, there was a 1.18 per cent increase to 129p.
Research: The study was based on driving 10,000 miles a year in a Ford Focus

Research: The study was based on driving 10,000 miles a year in a Ford Focus 63050for.jpg

And last week, The Federation Internationale de l’Automobile (FIA), which represents 35million drivers and includes the AA and RAC, wrote to the European Union complaining that the way prices are set is ‘far from transparent’.

It followed further rises in petrol prices as the cost of a barrel of crude oil rose above $125. But prices have not fallen as quickly as the price of oil has dropped.

AA spokesman Luke Bosdet said: ‘Motorists are going bust on us. No one is giving us any answers as to why petrol prices are so high. We need greater transparency so that everyone can see we are paying a fair price for fuel.’

A previous study by the AA also found that the average insurance policy soared by £210 last year, which hit young drivers the hardest.

Fully comprehensive premiums for 17 to 22-year-olds rose by more than 58 per cent during 2010 to £2,251 – often more expensive than the actual cost of their vehicle.

Third party, fire and theft policies, which are most commonly bought by young drivers, also rose by more than 70 per cent throughout the year, reaching £1,390.

A spokesman said: ‘This has led to the biggest annual premium increases we have seen since the AA Index began in 1994.’

 

Motoring groups demand petrol price investigation

 

An alliance of European motoring organisations has written to the European Union calling for an investigation into the price of fuel.

The call comes from the Federation Internationale de l'Automobile (FIA) in a letter to the European Union.

The group represents 35 million European drivers, including members of the RAC and AA in the UK.

The FIA said the way petrol prices are currently set was "far from transparent".

Record prices

A full tank of fuel for an average European car now costs around £10 more than it did a year ago.

The price of fuel in the UK reached record levels in April as the cost of Brent crude rose above $125 a barrel.

Although the price of crude has fallen $10 since then, motoring groups say the wholesale price of petrol has not fallen as fast.

The price of crude oil is only one factor effecting the petrol price.

Oil is traded in dollars, so the exchange rate against the dollar has a big impact on prices.

Taxes, transportation and refining costs also vary - impacting the cost of fuel at the pump.

But the FIA says the EU should investigate the way petrol prices are set for the European market.

Most European petrol prices are derived from the Rotterdam spot market where some cargoes of petrol and diesel are bought and sold.

But the FIA is not sure that this market works effectively.

"A platform with such a small volume is doubted to be a representative indicator for the vast European market," said Werner Krauss, chairman of the FIA Eurocouncil.

The organisation also wants the EU to look into the role of speculators who invest in the oil market.

Mr Krauss claimed the "resulting volatility" in petrol prices had a negative financial impact on consumers.

The complaint is backed by the UK motoring organisation the AA, which is calling for an independent regulator to oversee the petrol market.

"No one is giving us any answer as to why petrol prices are so high," said AA public affairs spokesman Luke Bosdet.

"We need greater transparency so everyone can see we are paying a fair price for fuel," he added.

Retailers have said that prices do go down when the cost of petrol has fallen. One way for sellers to balance the changing price of fuel is to buy in advance.

The UK's largest supermarket, Tesco, say they try to keep prices low and will sometimes buy fuel in advance to balance changes in price.

But in a statement the retailer said it was difficult to predict when to buy.

"As everybody knows, it's very difficult to predict movements in crude oil prices, which can go down as well as up. So it's wrong to say that buying in advance is necessarily an advantage," Tesco said in a statement.

Petrol prices threaten holiday getaway

Soaring pump prices are threatening to put a damper on the Easter getaway.

According to the latest figures petrol is now costing an average of 134.17 pence a litre compared to 119.90 this time last year. Meanwhile diesel has risen from 120.65 pence to 140.57 a litre.

The increase in petrol prices, for example means that the driver of a car with a 50 litre car, such as a Vauxhall Astra just over £67 to fill up, compared with £59.95 a year ago.

Even though the temperature is expected to approach 70F, the AA predicted that many motorists will be loathe to venture out to the seaside.

"I think this is what we will see this year," said Edmund King, the AA's president.

"People are cutting back on how far they will go. According to our latest poll, 49 per cent of people are now driving less."

The AA believes this could be bad news for seaside resorts, who normally would expect to cash in when the sun comes out.

"These increases have been like water torture, there has been a gradual drip, drip, drip of rising prices."

Huge queues outside garage as decimal point blunder sees Asda sell petrol for 12.9p a litre

* News spread quickly after pricing error was spotted
* A full tank of petrol cost motorists only £4
* Drivers turned up with jerry cans to cash in on the cut-price bonanza

Motorists were treated to fuel at the unbelievable price of 12.9 pence a litre thanks to an amazing blunder at a supermarket petrol station.

Dozens of drivers queued outside the Asda store in Rooley Lane, Bradford, desperate to make the most of the error, caused by the misplacement of a decimal point.

Some motorists made off with a full tank of fuel for only £4 before staff at the store realised what was happening and stepped in to end the bargain buying.

Motorists queuing outside Asda's store in Rooley Lane, Bradford, after the supermarket accidentally offered petrol for just 12.9p a litre

Queuing for a bargain: Motorists outside Asda's Rooley Lane store in Bradford after the supermarket accidentally offered petrol for just 12.9p a litre

 

The accidental cut in prices happened from 10.30pm until 12.20am early on Wednesday this week.

So many motorists were tipped off about the incredible bonanza that police noticed huge queues snaking away from the supermarket.

Several even brought jerry cans and other containers with them which they filled to the brim with the cut-price fuel.

Others stared in wonder at the cheap prices as they paid using the automated card payment 'fast lane' pumps. And because the kiosk was closed, it took nearly two hours for bosses to realise the error.

The inadvertent discount on the automatic, card-payment fast-lane pumps on the forecourt was caused by the misplacement of a decimal point

Spot the mistake? With the kiosk closed motorists filled up on four of the garage's automatic pumps for more than two hours before the error was spotted

Jonathan Dixon, 25, a self-employed network technician, was just one of the dozens of drivers who took advantage.

He said: 'We got a tip-off from a friend saying Asda had made a mistake.

'Unfortunately my car is diesel but a friend went down and phoned up saying it was actually that price. So they filled up their car - they got nearly 33 litres for £4.

'There were cars round the block, completely out of the Asda car park and actually starting to jam the road up outside, and this was at about 11.30pm.

'My friends just couldn't believe that the mistake had happened. We were wondering how long it was going to last - we saw the police drive by once or twice, and they were just looking at what the jam was.

'In the end, about an hour-and-a-half later, some people came across from the site, I guess they were the managers, and they said, "Look, there's something wrong, stop what you are doing," and they just pulled the emergency stop.'

Several motorists brought jerry cans and other containers with them, which they filled to the brim with the cut-price fuel

Queue at the pump: Several motorists brought jerry cans and other containers with them; others couldn't believe what they were seeing

An Asda spokesman admitted that human error was to blame with a decimal point being put in the wrong place as staff programmed the four automatic pumps to allow the filling station to operate after the cashiers' kiosk was closed.

It meant unleaded was sold at 12.9p per litre, rather than 129.9p for nearly two hours until the pumps were eventually shut down.

The spokesman said: 'We're well known for having the lowest prices in town, but clearly this was a mistake.'

Read more: http://www.dailymail.co.uk/news/article-1372389/Huge-queues-form-outside-garage-decimal-point-error-means-petrol-sold-just-12-9p-litre.html#ixzz1IIBAE5IJ

Soaring cost of fuel cuts traffic jams by TWENTY per cent

Congestion on Britain’s busiest roads has fallen by nearly 20 per cent over the last three-and-a-half years as motorists hit by spiralling fuel prices leave their cars at home.

New Department for Transport figures show significant reductions in delays on motorways and main trunk roads as well as a drop in the overall amount of traffic – and Ministers confirm it is linked to the recession.

Separate data shows that in some parts of the country, delays on a number of major roads are down by almost 50 per cent over the past year.

The Government statistics measure congestion on nearly 100 of the country’s main roads by recording the average vehicle delay for the slowest 10 per cent of the journey.
Congestion hit a high in July 2007, when the figure reached four minutes 19 seconds per ten miles, but in

January it was down to three minutes and 49 seconds, a drop of 17 per cent.
It marks the first reduction in traffic volume since the international oil
crisis crippled fuel supplies in 1979.

Roads Minister Mike Penning said: ‘The falls in traffic volume over the last two years are likely to be linked to the wider economic situation but we recognise that it’s a tough time for motorists as we tackle the country’s record budget deficit.’

A report by Trafficmaster, which supplies information about congestion to car satellite navigation systems via a network of speed sensors on major routes, said that the number of hold-ups last month on the M1 between Leicester and Sheffield had fallen 52 per cent compared with February 2010.

Graham Smith, the company’s data manager, said: ‘The simple explan¬ation is that there are now fewer vehicles on the roads.

There is considerably less commercial traffic and in some cases people are finding other ways to get to work.

‘People are also cutting down on leisure trips or driving to the shops. The cost of fuel is a major factor in people’s decisions about making journeys these days.’

Traffic volumes in city centres such as Leeds have also fallen and the numbers of motorists paying the congestion charge for driving in Central London fell by 500,000 between 2009 and last year, even though there was no rise in the charge.

Figures released by the Office for National Statistics revealed that petrol sales dipped by 4.1 per cent over the three months up to January compared with the same period a year earlier as petrol prices rocketed.

There was an even greater drop of 9.5 per cent in the three months up to December compared with the previous year.

The fall in sales came as the cost of a litre of unleaded petrol soared to an average of 133.17p – £6 a gallon – earlier this month, up from 128.3p in January, and garages reported that many people could afford only half or even a quarter of a tank at a time.

Experts predicted that the cut of 1p a litre announced in the Budget would do little to reverse the trend of declining car use.

RAC motoring strategist Adrian Tink said he was in no doubt that motorists were cutting down on driving as they felt the pinch.

‘We are seeing record numbers of people walking and biking. Evidence from the last couple of quarters is that the sale of petrol is dropping,’ he said.

‘A lot of people are combining journeys, making shorter ones and looking at alternatives like the train.’

He added that road improvements and extreme weather conditions were also factors.
 

Greedy garages defy the petrol price cut after Osborne\'s bid to help drivers

High prices: Some garages have refused to cut fuel prices by 1p, and some even put prices up

Drivers condemned greedy garages last night for failing to pass on the Chancellor's cut in fuel duty.

Despite the Budget cut of a penny per litre, pump prices stubbornly refused to move.

Some garages even cynically put up prices by a penny on Wednesday, the day of the Budget, so they could claim to have cut them when the reduction was enforced at 6pm.

Thousands more claimed they could not promise to cut prices at all because of the continuing rise in wholesale costs.

This is despite George Osborne's vow to watch oil companies and petrol stations 'like a hawk' to ensure there would be 'no funny business' on prices.

Mr Osborne announced a £2billion hand-out to drivers in his Budget statement.

As well as the immediate 1p cut, he cancelled next month's planned 5p rise and scrapped Labour's fuel duty 'escalator', which would keep pushing up prices.

Supermarkets Asda and Morrisons said they passed on the cut immediately, but growing evidence emerged yesterday of garage operators keeping prices unchanged for beleaguered drivers.

Before the Budget on Wednesday, petrol had risen to a record average of 133.53p a litre while diesel was at a high of 140.26p, making the cost of filling up a Ford Mondeo just short of £100.

Yesterday customers from all over the country called radio stations and posted messages on the internet telling of unchanged prices, or garages which had put a penny on a litre only to cut it again when the reduction came into effect.

Typical was Martin Ballard of Borehamwood, Hertfordshire, who said: 'I went past my local garage at 1.30pm on Wednesday and diesel was then 136.9.

'Just a bit later they'd put it up to 137.9. Sure enough when the duty cut took effect it was down again to 136.9. We've been scammed.'

Ian from Hereford wrote: 'My local garage put 2p on a litre on Monday, took a penny off last night and today put a penny back on.'

A BP garage in Mr Osborne's own Tatton constituency was still selling fuel at the same prices yesterday as Wednesday, at 134p for unleaded and 140p for diesel.

The Chancellor had said earlier: 'We will be watching like a hawk to make sure that motorists get the benefit of the Budget changes and make sure that there's no funny business.

'I can't control the world oil price, it may go up or down. What I can control are the taxes that are put on oil and are put on a litre of petrol.

Squeezing every drop: The OFT is investigating domestic oil and gas prices, but not forecourt costs

'I have cut that tax by 1p and crucially avoided the 5p increase that was coming in a few days time. For a family, that is 6p a litre less tax.'

Chief Secretary to the Treasury Danny Alexander insisted that the duty cut would 'feed through' to customers.

He said oil giants, which have been hit with a £2billion tax on windfall profits, would not be able to pass on higher charges to consumers because the price of oil is set globally.

Independent petrol retailers claimed they had not let the price drop because they would still be selling fuel bought before the duty cut for at least another week.

The Retail Motor Industry Independent Petrol Retailers Association, which represents two-thirds of the 8,800 forecourt sites across the UK, warned that prices may not come down at all.

'Wholesale costs have continued to rise this week with unleaded up by nearly 2p a litre and diesel up by 1p,' a spokesman said.

'Thus prices at the pump will continue to rise irrespective of the duty reduction.'
Motoring groups demanded that the oil giants be subject to a 'road fuel regulator' to prevent UK drivers being 'fleeced' by industry sharp practice and 'profiteering'.

AA spokesman Luke Bosdet said: 'At the moment the whole fuel process is shrouded in mystery. Unless there is real transparency on pricing in this country, the oil giants can pull a fast one and no one would be any the wiser.'

The Office for Fair Trading has launched an investigation into domestic oil and gas prices, but will not consider the cost of petrol on station forecourts.

Shadow chancellor Ed Balls said the fuel duty cut was 'paltry' and called on the Coalition to reverse the recent VAT hike which added 3p to a litre of fuel.

'I think most people will say a 1p cut is not very much when we are being hit so hard by our petrol prices,' he said.

A Treasury spokesman said: 'We are clear we have cut duty by 1p, cancelled the incoming 5p rise from the previous Government due next week and introduced a stabiliser.

'We shall be watching like hawks to ensure this is passed on.'

BP said: 'Out of 1,500 BP-branded sites, 350 are operated by BP and we set the prices at those, but the rest are dealerships and are responsible for their own pricing.

'Due to competition laws, we cannot set the prices at those independent sites. That is done by the individual operator of the sites.'

Read more: http://www.dailymail.co.uk/news/article-1369724/Greedy-garages-defy-petrol-price-cut-Osbornes-bid-help-drivers.html#ixzz1HaioD9vW

More bad news for motorists as average price of diesel hits £1.40 mark for the first time

Fuel prices at the pumps have reached new record highs, with diesel passing the £1.40 a litre mark for the first time, the AA said today.

The average cost of petrol is now £1.33 a litre, with diesel at £1.40 a litre.

The figures come the day before Chancellor George Osborne is expected to announce in the Budget that he is scrapping the planned April rise in fuel duty and is the latest in a series of sharp rises in the cost of fuel.

Drivers were paying £1.16 a litre for petrol and £1.17 for diesel a year ago.

By the start of this year, prices had climbed to £1.25 a litre for petrol and £1.29 for diesel.

AA president Edmund King said: 'A 10p rise in the pump price of diesel since the start of the year, equivalent to an extra £5 for even the smallest of tanks, is a staggering extra burden on private and business drivers.

'Millions are desperate for the Chancellor to provide some relief through shelving the fuel duty increase scheduled for April 1.

'What clearer signal does the Chancellor need that action is needed now. Today's record fuel prices say it all.'

RAC motoring strategist Adrian Tink said: 'Today's new record high is clear sign that the Chancellor has to do something in the Budget to control the price of fuel.

'Firstly, the planned fuel duty rise of inflation plus 1p has to be scrapped. On top of this, a mechanism has to be put in place to control the cost of fuel.

 

'These spiralling prices at the pumps are crippling family budgets and hitting the economy hard.'

Petrol prices have soared ALREADY 5p in the past month: Drivers\' groups make last-ditch plea before Budget

Drivers braced for an up to 5p-a-litre increase in fuel duty on April 1 have already suffered a similar surge in petrol and diesel prices over the past month, according to figures from the AA.

Average UK petrol prices have risen from 128.81p a litre in mid-February to a new record of 132.88p in mid-March.

Average diesel pump prices have gone up 4.97p a litre in the same period, from 134.01p to an all-time high of 138.98p, said the AA which urged the Chancellor to use the Budget to scrap the planned April fuel duty rise.

Feeling the cost: Drivers nervous ahead of fuel duty rises have already suffered a rise in petrol prices of almost 5p over the last month, figures revealed

For petrol car owners, the 4.07p average increase in pump prices has added more than £2 to the cost of tank of petrol and a family with two petrol cars has seen the monthly petrol bill go up £8.64 over the past month.

Northern Ireland remains the most expensive region for petrol, averaging 133.8p a litre.

The cheapest region for petrol is Yorkshire and Humberside, at 131.9p a litre.

Northern Ireland is also most expensive for diesel, averaging 139.7p a litre while Yorkshire and Humberside is the cheapest, at 138.2p.

AA president Edmund King said: 'Drivers are already contributing 5p a litre more in VAT from petrol and diesel so far this year. If this continues, the Treasury will gain an extra £1.25billion over the year and maybe more if stock markets push oil prices higher.

'Surely, drivers are already paying their share towards filling the budget deficit, with some breaking under the strain on their own finances.'

He went on: 'Turmoil in the Middle East, with its impact on oil and pump price volatility, is already adding to financial uncertainty for poorer drivers.

'The AA asks the Government to provide some respite by cancelling the fuel duty increase on April 1.

'If not, tales of the rural poor being marooned in their villages and people cutting back on their food to keep the car on the road so that they can go to work will become more common - to the shame of a developed country.'

The RAC Foundation described the spiralling price of fuel as a 'critical issue' after a survey put it top of people's transport concerns.

More than two-thirds of 991 people surveyed by Ipsos MORI put tackling high fuel prices among their top three transport priorities for government ministers, up from 46 per cent at the end of March last year.

Professor Stephen Glaister, director of the RAC Foundation, said: 'The price of fuel has become a critical issue, and it is not hard to understand why. A year ago the price of a litre of unleaded was 117p, today it is around 132p.'
 

How are motorists saving fuel?

 

BBC News Magazine

Petrol prices have risen to record levels and the UK government has hinted it may postpone a planned 1p fuel duty increase due next month. But how much have driving habits already changed in an effort to save fuel?

In 2000, fuel protests sparked by rising petrol prices nearly brought parts of the country to a standstill. The price at the pump was about 80 pence a litre.

Now, a little more than 10 years later, the price has broken the £1.30 mark, and people are responding in quite a different way. They are changing the way they drive.

It's not surprising that motorists are getting savvy in trimming their fuel bill, with the tank of a family saloon costing nearly £70, at a time when rising living costs are squeezing household budgets in other ways.

Chancellor George Osborne has hinted that a 1p fuel duty hike due next month will be scrapped, after the highest oil prices since 2008 sent prices at the pump to record levels.

But motorists are not waiting for help, but helping themselves. While eco-driving has long been favoured by those keen to trim their budgets or reduce harmful CO2 emissions, the steady increase in petrol prices over the past year seems to have influenced habits more widely.

Quick guide to eco-driving

Maintenance:

• Regular servicing to maintain engine efficiency
• Check tyre pressures regularly

Before you go:

• Lose weight - empty the boot
• Streamline - roof racks and boxes
• Don't get lost - plan unfamiliar journeys
• Combine short trips - cold starts are inefficient
• Consider alternatives like walking or cycling

On the way:

• Don't start the engine until you're ready to go
• Drive smoothly, accelerate gently, anticipate
• Decelerate smoothly by releasing the accelerator in time, leaving the car in gear
• Rolling - keep the car moving if possible
• Change gear without labouring engine - change up at 2,500 rpm in a petrol car
• Cut down on the air-con
• Turn off heaters, demisters, headlights
• Stick to the speed limit
• In a queue, turn the engine off if it looks like you could be waiting for more than three minutes

Source: AA Driving School

One key change appears to be that people are making fewer journeys, although how much is due to fuel consumption is difficult to say.

Figures supplied by the Department of Transport suggest that congestion on motorways and trunk roads has been falling. In the year ending December 2010, the provisional figure for average vehicle delay on the slowest 10% of journeys was 3.55 minutes per 10 miles, a fall of 9% since March 2008.

Adrian Tink of the RAC is in no doubt that motorists began cutting their driving towards the end of last year, as they felt the pinch. In a survey of 1,500 drivers last month, 75% said they had reduced car use.

"We're seeing record levels of people walking and biking. Evidence from the last couple of quarters is that sale of petrol is dropping. People are buying less fuel.

"A lot of people are combining journeys and making shorter ones. Instead of popping out twice they are popping out once. People are doing fewer longer journeys, because they are looking at alternatives like the train."

They are also driving more slowly, he says, with anecdotal evidence that average motorway speeds are down.

"We have a lot of patrols and customers contacting us and it's absolutely clear that people are changing their habits because they need to reduce the money they're spending on the tank."

Fewer car journeys means less pollution, fewer road accidents and shorter traffic jams, all of which would be welcomed my many.

There were fuel protests in 2008

It's a point Mr Tink is happy to acknowledge. Economising is not a bad thing, he says, but there's a danger that people are being priced out of their cars, in a society that for 20 years has been designed around them.

The AA reports the same picture, of falling petrol sales and fewer car journeys. Spokesman Luke Bosdet says petrol sales in the third quarter of 2010 were down by 13% compared with 2007.

"We do surveys of 15,000 AA members and two thirds say they're cutting back on car use or reducing other household spending to absorb the extra costs.

“Start Quote

The big discussion is how long can you make a fuel tank last? People are starting to talk about it like they used to talk about property prices”

End Quote Maria McCarthy The Girls' Car Handbook

"Our research suggests people are cutting down on motorway speeds and sticking to the slower lanes. There's a degree of danger in going too slow if lorries come up behind you. But drivers that might have done 80 are now doing 70 and that means a significant saving."

A rule of thumb often followed is that 50-55mph is the optimum speed, says Mr Bosdet, but it depends very much on the car.

Driving at 80mph will cost you about 10% more in fuel than driving at 70mph, says a spokeswoman for the Department for Transport.

This week, the use of speed limits as a tool to control fuel consumption was highlighted in Spain, where the speed limit was reduced from 120km/h (75mph) to 110km/h (68mph). Spain is heavily dependent on imported fuel and 13% of its oil usually comes from Libya.

One family in Exeter has been putting these principles into practice. The Boults have saved 54% from their fuel bill since last summer, which amounts to an annual saving of £619 for the two-car family.

How the Boults saved 54% on fuel

• Heather, 42, community centre manager, drives Ford Fiesta
• Martin, 43, tutor at a charity, Vauxhall Centra
• Children Catherine, 12, and Ryan, 11
• Fewer car journeys, more by bike and bus
• Keeping tyres inflated, an empty boot, constant speeds and no revving at traffic lights

Some of that saving is down to cutting down on car journeys, says mum Heather, a 42-year-old community centre manager, but about two-thirds is because of changes to the way she and husband Martin drive, after some eco-driving lessons from Shell as part of the Shell Smarter Drivers Initiative.

"There were little things like putting more air in the tyres. And I had always felt it was good to fill the tank but if you half fill it then the car is lighter and you use less fuel.

"I used to pull up at traffic lights and think they would go green in a little while, and leave my feet on the clutch and accelerator, but now I put it into neutral, the handbrake on and take my feet off the accelerator, which can save you about £10-20 a week.

"And driving more smoothly is important. The more you are pressing the accelerator pedal, the more petrol you're running through the car, so if you keep it at a constant speed, at 40mph instead of 50, 30, 60, 20."

Leaving about 10 minutes earlier for work, before 8am instead of after, means avoiding traffic jams and driving with an empty boot helps too.

Behaviour at the petrol pump has changed too, according to research by Asda supermarket. Based on thousands of transactions nationwide in the two years leading up to January this year, there was an increase of 18% in the number of people filling their tank only to a round pound, like £10 or £20, not to the full tank.

And the average spend at the pump has fallen from £25 to £20, says the Retail Motor Industry Federation, and more customers are paying with cash and coins.

Wait for spring and save £2

• In spring, drivers use lights and wipers less and the oil is not as cold
• This saves drivers about one mile per gallon, then that's 11 miles in a 50-litre tank
• The average petrol car, according to official figures, does 31 miles per gallon, or 6.8 miles per litre
• Improving that mpg to 32 would save 11 miles in a gallon, or 1.6 miles in a litre
• That's worth £2, or 4p per litre on a 50-litre refill

Source: Luke Bosdet, AA

It's all part of a cultural shift which has made fuel consumption a subject now regularly heard at dinner parties, says Maria McCarthy, author of The Girls' Car Handbook and proud owner of an N-reg Vauxhall Astra.

"Since January it's been the number one issue. The big discussion is how long can you make a fuel tank last? People are starting to talk about it like they used to talk about property prices.

"In my line of work, people in social situations don't usually talk to me about my work, but now they do. We have these cultural shifts and they recently reached a tipping point and everyone is now concerned about fuel consumption."

Some motorways have taken on an eerie quiet, says motoring expert and broadcaster Quentin Willson, speaking while driving.

“Start Quote

We'll have a 100mpg car before long”

End Quote Quentin Willson

"We're going a lot slower, we're not doing the essential journeys, the pleasure journeys. I'm currently on the M6 [motorway], it's 3 o'clock and it's absolutely clear. I'm doing 70 and it's fine.

"Last night, I was on the M20 and it was eerily quiet. So I think we're seeing a real change. People aren't driving, doing the stuff they used to do, because they're saving fuel."

While environmentalists would welcome reduced car use and reduced CO2, says Willson, it also means reduced VAT, corporation tax and money to the Treasury. The implications of a further rise in fuel duty would affect all aspects of the economy, increasing prices in general and ultimately costing jobs.

Long-term, the solution lies in greener technology. "Fuel efficiency has changed what we buy. Straight off the showroom carpet, you can buy a Polo Bluemotion, which does 70mpg and a little Vauxhall Corsa which does 60mpg.

"For the last four or five years, the car industry has seen this coming. We'll have a 100mpg car before long."

Osborne plans cut in duty as petrol hits £1.40 a litre

Tax on petrol is to be cut in this month’s Budget as drivers are forced to pay £1.40 a litre for the first time.

Chancellor George Osborne used a speech at the Tory spring conference in Cardiff to give a clear commitment to help motorists.

Mr Osborne, who delivers his second Budget on March 23, left himself with little room for manoeuvre when he reached out to motorists concerned about fuel prices, telling them: ‘I hear you.’
Highest ever: A petrol sign displays the price of fuel as 140.9p for a litre of unleaded petrol in Rainham, Kent

Highest ever: A petrol sign displays the price of fuel as 140.9p for a litre of unleaded petrol in Rainham, Kent

He added: ‘I won’t take risks with economic stability, or wreck the public finances. But I promise you I am doing everything I can to find a way to help.’

Treasury officials appear increasingly confident that the idea of a fuel duty ‘stabiliser’ – a system which would see duty cut as oil prices rise, and increased as they fall – can be made to work.

In the shorter term, the Chancellor is under growing pressure to cancel a 1p increase in fuel duty announced by Labour and due to come into effect on April 1.

The Treasury has enjoyed an unexpected windfall from lower than forecast levels of jobseeker’s allowance claimants, which could allow it to scrap the rise.

Ministers are acutely aware of the longstanding link between a government’s popularity and petrol prices.

At the weekend, a BP garage in Rainham, Kent, was charging motorists £1.40 a litre for unleaded petrol and £1.44 for diesel.

Alan Duncan, International Aid Minister and a former oil trader, suggested at the weekend that it was not inconceivable that motorists would end up paying £4 a litre.

‘When I said oil would go through $100, people thought I was bonkers. Now we are not far off $130,’ he said.

Peter Carroll, spokesman for campaign group Fair Fuel UK, warned: ‘We are being pushed into a fuel price crisis. My reaction to these prices is one of horror, of what it will do to the economy, what it will do to people and what it will do to business.’

Significantly, the Liberal Democrats have withdrawn their longstanding opposition, on environmental grounds, to moves to help motorists.

LibDem Treasury Chief Secretary Danny Alexander has pioneered a 5p fuel duty cut for people in remote island communities, and is confident of getting the necessary EU clearance. Tim Farron, LibDem party president, said soaring fuel costs were forcing people on low incomes to consider giving up work to avoid travel costs.

‘This is not just an issue for white van man or Jeremy Clarkson fans,’ Mr Farron said. ‘It is an issue of social inclusion and social justice.’

Ed Balls, the Shadow Chancellor, told Mr Osborne to ‘get his head out of the sand’.

‘He should be helping hard-pressed families now by immediately reversing the Tory VAT rise on fuel,’ he added.

*The soaring cost of fuel has seen a sharp increase in the number of motorists driving out of petrol stations without paying.

The number of ‘drive offs’ from forecourts rose 52 per cent in the first nine months of 2010 – costing garages more than £17million.

 

Petrol prices \'may hit £2 at pumps\'

Petrol prices could soar to £2 a litre if the instability in Libya and neighbouring countries escalates, a Government minister has warned.

Alan Duncan, a former oil trader, suggested the price of crude could top 200 dollars a barrel - significantly above the current record of 147 dollars a barrel from July 2008.

In a worst-case scenario where terrorists exploit the turmoil in the Gulf to bomb tankers and reserves, the price could even nudge 250 dollars, which would leave UK motorists paying some £2.03 at the pumps.

The dire warning, in an interview with The Times, came as the situation in Libya appeared to be worsening.

Rebels and government forces have clashed near a key oil terminal and forces loyal to Muammar Gaddafi have attacked a town near Tripoli.

"I've been saying in Government for two months that if this does go wrong, £1.30 at the pump could look like a luxury," Mr Duncan said. "USD200 is on the cards if... anyone is reckless and foments unrest."

The international development minister added: "It could be very serious. If crude oil doubles, you're going to have a serious spike (in petrol prices). Try living without it for a week."

Interpol has issued a worldwide alert against Gaddafi and 15 of his close associates, as the international community continues to ratchet up the pressure on the dictator. The international police agency's "orange notice" describes the regime figures as individuals who have been identified "as being involved in or complicit in planning attacks, including aerial bombardments, on civilian populations".

The Ministry of Defence has confirmed that British troops are on stand-by for deployment to Libya but stressed that the troops are prepared to assist with humanitarian and evacuation operations, not combat.

The end of the road for millions of drivers: Middle East chaos could \'push petrol to £8 a gallon\'

* £100 to fill average family car
* Please to scrap Government's fuel duty increase
* Political unrest could spread to oil-rich Saudi Arabia

Motoring groups issued their starkest warning yet that millions of drivers could be forced off the road as petrol prices rocket to a staggering £8 a gallon.

Political chaos that has engulfed the Middle East is predicted to push the price of oil to a record high in the coming weeks.

The cost to fill an average family car would soar to more than £100, making driving the preserve of the well off.

Flammable: Traders sweat under the pressure in New York's Mercantile Exchange as oil prices soar

Driving groups have now made a despite call to the government to scrap the impending fuel duty rise in April that would add 5p to the cost of a litre.

RAC motoring strategist, Adrian Tink said: 'It’s clear that we’re getting to the stage where drivers are going to be priced out of using their cars. Just another 9p increase on a litre of fuel will see people significantly limit their vehicle use. Before we know it the car will become the preserve of the rich.

'For many the car is a necessity rather than a luxury. For example, people living in rural communities have little, or no, public transport to access essential local services – making the car vital for day to day living.'
PETROL,PETROL PRICES,PETROL STATIONS

Fuming: Driving groups have warned that millions of drivers could be forced off the road as the cost to fill an average car is set to reach £100 a time

The price of crude oil soared again yesterday to $119 a barrel amid fears that unrest in Libya could spread to Saudi Arabia and Algeria. If the countries Arab leaders decided to end oil production as a political tool it would cause further increases.

Experts believe that if the crisis does spread to the oil rich nations the cost of a barrel of oil would hit $220, its highest level for two-and-half years since the fuel crisis in 2008.

More...

* Please help us, my good friend Tony Blair: Gaddafi's son asks for former PM's help to 'crush enemies'
* Makes you proud to be British! As the Libyan rescue finally limps into action, Cameron and Hague apologise for fiasco, Clegg admits he forgot he was in charge and a minister gaffes over the SAS
* Outside the rebels were jubilant. Inside the court I came face to face with Gaddafi's savage mercenaries
* Saudi promise to increase oil production and fill any gap from Libya helps price close below $100 a barrel

Such astronomical rises would lead to a 5p rise in the cost of petrol of pumps, taking the cost to fill a 18.litre Mondeo to £105.50. Combined with the government's intended fuel duty rise the cost of petrol could become too high for many drivers.

The cost of a gallon of oil with just the fuel duty increase would be £6.10 a gallon but with further unrest in the Middle East it would hit £8 a gallon.

Energy Secretary Chris Huhne has reportedly attended the government's Cobra meeting in a bid to stave off any impending petrol crisis.
GADDAFI LOSES CONTROL OF BENGHAZI IN EAST LIBYA. PART OF THE CITY BURNS

Unrest: Chaos in oil rich countries in the Middle East such as Libya, Saudia Arabia and Algeria could increase the cost of petrol and diesel

The escalating prices are causing drivers to rethink how often they take to the road, with three quarters admitting they have already made changes, according to survey by the RAC.

Researchers found that a rise of just 9p on the current average price of 129.05p a litre would make drivers significantly limit their car use, fundamentally impacting on peoples’ life, work and family.

According to drivers, the responsibility for the spiralling fuel prices lies firmly at the door of the Government, with two thirds of drivers believing it is their fault and 95 per cent wanting them to do something about it.

The AA joined the swelling ranks of driving groups urging the government to scrap a rise in fuel duty.
LIBYA-PROTESTS OIL. Map of Libyan oil facilities with charts detailing reserves, production and major customers.

A spokesman said: 'The motorist is going to have to brace himself for a storm.

'Prices are already starting to creep up and this puts intense pressure on the government to scrap the fuel duty increase. They will already be getting significantly higher VAT from the higher prices on the forecourts anyway.'

TV presenter Quentin Willson, of the pressure group FairFuelUK, will lead a Whitehall protest against spiralling petrol and diesel prices.

He will head a delegation from the FairFuelUK campaign that will lobby the Treasury and hand in a letter addressed to Chancellor George Osborne

The letter to Mr Osborne urges him to abandon the planned April fuel duty increase of 1p a litre and to announce measures to bring down and stabilise the cost of fuel.

Mr Wilson warned that fuel duty rises could lead to economic chaos.

'The planned duty increase is insane and could tip the economy towards a double-dip recession', he said.

'The increasing cost of fuel is strangling the economy, stoking up inflation and really hurting businesses and the public.

'The Government need to act boldly and rule out that April increase immediately to give people and businesses confidence.

'We implore the chancellor to immediately announce that the rises crapped and that he will bring in urgent measures to stabilise the prices.'

Read more: http://www.dailymail.co.uk/news/article-1360483/The-end-road-millions-drivers-Middle-East-chaos-push-petrol-8-gallon.html#ixzz1F38AWZC6

Crude oil prices push higher on Libya supply concerns

Market volatility can give opportunities but also cause headaches

Oil prices have continued to climb in Asian trading, hitting their highest levels since October 2008 after Libyan leader Col Muammar Gaddafi refused to stand down.

There are concerns that the anti-government unrest in Libya will disrupt global oil supplies.

Stock markets in Asia were little changed after dropping on Tuesday.

Investors said they are gauging the impact of Libyan unrest on the global economy and corporate profit growth.
Major shift?

Libya is the world's 12th-largest exporter of oil.

"Global investors are now trying to decide if the Middle East crisis means a major shift of geopolitical balance of power in the region," said Masayuki Kubota of Daiwa SB Investments.

He added that there could be "more instability and possible further oil price rises".

In Asian trade, US light sweet crude for April delivery was 2% higher at $95.45 a barrel. On Tuesday, the March contract had jumped almost 9% in value.

Brent crude was trading up 0.4% at $106.23 a barrel.

"The major underlying fear in the market is that these protests spread in the region to even larger producers like Saudi Arabia," said Andy Lebow, a trader at MF Global in New York.

"While that might not look likely right now, even a hint of real problems there could send prices vertical."
Taking stock

Shares were mixed in early trading across Asia.

Japan's Nikkei 225 index was little changed on Wednesday despite the Ministry of Finance reporting the first trade deficit in almost two years.

Indexes in Singapore, Shanghai and New Zealand were also trading flat. Australia's main S&P/ASX 200 index slid 0.2%. South Korea's Kospi Index rose 0.2%.
�

The great filling station rip-off: Price of petrol still rising here despite falls across Europe

Sky high: Prices have dipped by 4.4 per cent across Europe in the last month - but in Britain they have gone up by 1.18 per cent

Filling stations are ripping off motorists, according to research released today.

The AA motoring group accuses retailers of failing to pass on a fall in wholesale petrol costs, which saw prices in Europe dip 4.4 per cent in January to 121p a litre.

Britons, by contrast, saw a 1.18 per cent increase to 129p.

Unleaded petrol yesterday hit a record £5.86 a gallon while diesel was also in uncharted territory at £6.10 a gallon, or 134p a litre.

It means filling up the 70-litre tank of a family saloon now costs £90.20 – compared with £78.47 a year ago.

The AA said that even though wholesale costs have started to rise again, European prices are 3 per cent lower than three weeks ago, compared with 0.8 per cent higher in the UK.

It also accused supermarkets of operating a charging lottery, where prices in neighbouring towns can vary by 4p a litre.

It said Asda was an honourable exception with a national pricing policy and low prices.

AA president Edmund King said: ‘Whether retailers are trying to compensate for lower volumes of sales or supermarkets are choosing to convert fuel-cost savings into cut-price toilet cleaner offers is irrelevant.

'European fuel retailers, including France with its aggressive supermarket pricing, are under similar strains yet they passed on much of the wholesale petrol price reduction. They also reduced diesel prices for a while.

‘It is time that the retailers recognised that greater price transparency will protect their interests, as well as those of consumers and the Government.’
Petrol

Mr King called on the Government to scrap the proposed fuel duty increase on April 1.

Chancellor George Osborne is under increasing pressure to ditch the ‘1p plus inflation’ tax hike which would add another 5p a litre to the cost of fuel.

The report said Northern Ireland has the most expensive petrol in the UK at 129.9p a litre.

Drivers in Yorkshire and Humberside meanwhile, have the lowest prices, with unleaded averaging 127.8p a litre.

The AA said there should be a fuel price regulator to act as an ‘honest broker’ between retailers and consumers to clarify price movements and price differences.

Brian Madderson, of RMI Petrol, which represents 6,500 independent filling stations, rejected the charge of profiteering.

‘Attempts to deflect the impact of relentless Government tax hikes by suggesting that retailers are profiteering are ludicrous and unhelpful to an industry sector struggling to preserve jobs especially in the challenged rural communities,’ he said.

He added that forecourts were closing at a rate of around 400 per year and rural sites were most at risk.

Mr Osborne has hinted at action to ease the burden on drivers in next month’s Budget.

He told MPs that ministers were examining the planned April 1 fuel duty rise and looking at the possibility of a stabiliser mechanism to smooth out spikes caused by rising oil prices.

There would ‘potentially’ be announcements in the Budget, he said.

The campaign group FairFuel UK, backed by the Road Haulage Association, the Freight Transport Association, the Fuel Card Company and the RAC, has mounted protests outside the Treasury and Downing Street to warn that high fuel costs are driving firms out of business.

TV presenter Quentin Willson, the public face of their campaign, said: ‘This has become a major national issue. Oil has passed $100 a barrel and pump prices are surging.

‘The increasing cost of fuel is strangling the economy, stoking up inflation and really hurting businesses and the public.’

Read more: http://www.dailymail.co.uk/news/article-1358152/The-great-filling-station-rip-Price-petrol-rising-despite-falls-Europe.html#ixzz1EO5lf143

Treasury slashes fuel duty by 5p a litre - but only for remote island drivers

*

Minimal benefit: Fuel duty is to be slashed by 5p - but it will only affect those in the remote parts of Britain

Minimal benefit: Fuel duty is to be slashed by 5p - but it will only affect those in the remote parts of Britain

Motorists are to receive a 5p a litre discount on the price they pay for fuel under plans being finalised by the Treasury.

But the measure only applies to those living in the remotest parts of Britain.

Ministers are confident of winning EU backing for a plan to cut duty on the Inner and Outer Hebrides, the Northern Isles and the Isles of Scilly, which have been worst affected by prices hitting £1.40 a litre or more.

The Treasury is also confident it will be possible to introduce a ‘fair fuel stabiliser’ to help millions of motorists across the rest of Britain.

Officials are said to be making ‘good progress’ on the plans for a fundamental reform of fuel duty that would mean tax duty going down when prices rise, and vice versa, to stabilise prices at the pumps.

Treasury Chief Secretary Danny Alexander is planning the 5p a litre fuel discount since many island motorists are already paying £1.40 and more for petrol.

Ministers would like to extend the discount to remote mainland areas, too, but believe there is less chance of that getting the go-ahead from Brussels.

A fuel duty discount can only be introduced if the Government can persuade the European Commission that it would not breach competition laws.

However, precedents have been set by the French island of Corsica and Portuguese and Greek islands, which already enjoy fuel tax discounts approved by Brussels.

Petrol prices this week reached an all-time high of 128.86p a litre on average, or £5.86 a gallon.

Diesel has also reached a record high of 134.13p a litre – or £6.10 a gallon.
Some petrol stations, particularly those in the Scottish islands, are charging £1.40 a litre.

A Government source said: ‘The precedents are there in Greece and elsewhere. For the areas affected by these very high prices, it will be a significant cut.’

The news that a fair fuel stabiliser has not been ruled out by the Treasury will boost hopes that every motorist in Britain may win some respite in next month’s Budget.

Chancellor George Osborne is also considering plans to postpone a scheduled increase in fuel duty.

 

Drivers running fuel tanks on empty because of soaring fuel prices

An increasing number of drivers are 'running on empty' due to high petrol and diesel costs.

Breakdown service Green Flag reported a 40 per cent increase in its number of fuel-related call-outs in the second half of January, compared with the same period last month.

A survey by the company showed that 48 per cent of drivers had been dangerously close to empty or broke down before reaching the pumps at some point in their lifetime.

More than a third of these incidents occurred in the last three months during a period when the price of petrol at the pumps has reached record levels.

The poll also showed that more than 30 per cent of drivers had cut down on their motoring to offset rising fuel prices.

But only 4 per cent had taken up car-sharing and only 6 per cent had bought a more fuel-efficient car.

Of the 2,110 adults surveyed, those from Northern Ireland had the most fuel-related breakdowns, while younger drivers (aged 18-34) were the ones most likely to run out of petrol.

Dan Robinson, head of Green Flag, said: 'There is no hiding from the fact that the constant rises in fuel are affecting drivers nationwide, with almost half now driving on empty.

'For most, driving is a necessity rather than a choice and despite Government speculation about stability, high fuel prices are here to stay, placing pressure on the motorist's pocket.

'We encourage motorists to become more vigilant about filling up to ensure they are not left stranded. It's as simple as keeping an eye on your fuel gauge before setting off, no matter if it's a short trip or a long journey.'

Petrol prices have soared to record levels with unleaded currently costing an average of around 128.6p per litre, according to PetrolPrices.com.

The average diesel price is 133.7p.

 

 

 

 

High demand for fuel-efficient cars

British Car Auctions (BCA) has reported an increase in demand for the most fuel-efficient used vehicles, leading to a surge in their prices.

A shortage of such vehicles in the market is the main factor pushing the price levels upward.

The rise is also expected to result in an increase in the number of people taking out car insurance for fuel-efficient cars.

Tim Naylor of BCA said: "The demand is there, but supply is a major issue for anyone wanting to buy the most fuel efficient used vehicles.

"A quick look at our online stock locator on just one day found only 78 vehicles for sale throughout our nationwide network of auctions that matched the Fuel-Economy.co.uk list of most fuel-efficient cars.

"This is fairly representative of the current low availability of these vehicles as used cars and compares to the 12,000 plus vehicles BCA typically has consigned for sale on any given day."

According to Fuel-Economy.co.uk, the Honda Insight petrol hybrid, Renault Clio 1.5 dCi, Toyota Prius petrol hybrid and Citroen 1.4 litre diesel models C1, C2 and C3 are among the leading most fuel-efficient diesels and petrol hybrids.

Meanwhile the smart Roadster; smart fortwo, Toyota Aygo, Citroen C1, Peugeot 107 and Daihatsu Charade are included in the list of the top 10 most fuel-efficient petrol cars.

Naylor added "As fuel prices continue to climb, we expect used values for the most fuel-efficient cars to keep rising as well."

19p a litre \'petrol\' in development

A British company has invented artificial petrol that emits no greenhouse gases and could cost as little as 19p per litre at the pumps.

Cella Energy, the Oxfordshire-based firm that is developing the fuel, uses hydrogen, which is currently much cheaper than oil.

The first road tests of the as yet unnamed fuel are scheduled to take place next year. If everything goes to plan, then the miracle 'petrol' could be available in three to five years.

Though a figure of 19p per litre has been suggested, it is expected that the motorist would pay around 60p per litre with the addition of Government fuel tax.

Even so, that would reduce the price of filling up a 70-litre petrol tank to £42.

Speaking to the 'Daily Mail', chief executive of Cella Energy, Stephen Voller, said: 'In some senses, hydrogen is the perfect fuel. It has three times more energy than petrol per unit of weight, and when it burns, it produces nothing but water.'

He also said that the fuel could be used in existing cars without the need for engine modifications: 'Early indications are that the micro-beads can be used in existing vehicles without engine modification. The materials are hydrogen-based, and so when used produce no carbon emissions at the point of use, in a similar way to electric vehicles.'

Critics remain sceptical of the real world savings, though. AA president Edmund King commented: 'The fact the hydrogen is cheaper now doesn't mean it always will be because the Government would soon get its hands on it and increase the tax.'

Protect motorist from soaring prices, says Boris Johnson

Boris Johnson weighed into the row about fuel taxes last night, calling on the Prime Minister to protect motorists from soaring oil prices.

He said last night: ‘If I were the government, I would think seriously about that fuel duty stabiliser because when it costs more to fill your tank than to fly to Rome, something is seriously wrong.’

The London mayor described filling up his own 1995 Toyota Previa over the weekend, which - including the Sunday papers - came to £80.54.

He wrote in his Daily Telegraph column: ‘Talk about whiskey. It would be cheaper to fill it up with Black label’, adding: ‘The price clobbers small businesses and makes life tough for people in rural areas who don’t have access to good public transport....

‘Petrol is cheaper in virtually every European country than it is in Britain and whatever the reason for the recent spikes we cannot get around the fact that the spikes are jabbing the consumer all the more painfully because the Treasury takes about 60 per cent of your bill in excise.’
 

Now they want to ration petrol: MPs back token scheme as prices are set to hit £8 a gallon by the summer

* Households would be given tokens for fuel in home and cars
* Surplus units could be sold and extra tokens bought

A petrol rationing programme has been proposed by MPs as prices look likely to soar to £8 a gallon this summer.

Households would be given a set number of free energy 'tokens' which would be offset against any fuel burnt in a vehicle or at home, under the proposals made by the All Party Parliamentary Group on Peak Oil.

Under the Tradable Energy Quotas programme, surplus energy units could be sold and extra tokens bought.
Petrol rationing: Plans to give households energy tokens have been proposed in a bid to deal with global energy shortages and the climate change crisis

Petrol rationing: Plans to give households energy tokens have been proposed in a bid to deal with global energy shortages and the climate change crisis

The Coalition Government has so far insisted it has no plans to implement the scheme.

But the all-party committee of 20 MPs said its proposals were necessary to deal with global energy shortages and the climate change crisis.

It comes as the RAC Foundation warned that fuel could hit £1.75 a litre - £8 a gallon - in parts of the country by the summer.

Prices of £1.50 a litre are already being charged in the Orkney Isles.

'Tradable Energy Quotas are the only way we can reduce carbon emissions and at the same time guarantee that everyone gets fair access to limited energy supplies,' said Shaun Chamberlin, co-author of the report into TEQs.

But Luke Bosdet of the AA dismissed the idea as an 'academic's brainwave typically out of touch with reality', according to the Daily Express.

He told the newspaper: 'It sends alarm bells ringing because of its administration and fears of exploitation.

Concern: Philip Hammond admitted that fuel prices have become a problem for cash-strapped drivers

'People will be allowed to trade units they don't use, which as usual will hit the lower-income driver who becomes priced off the road.

'It would be open for abuse by greedy individuals and politicians.'

The Transport Secretary Philip Hammond yesterday admitted that soaring fuel prices are a real ‘problem’ for hard pressed motorists.

And he offered an olive branch to cash-strapped drivers, signalling that there will be action to cut prices in March’s budget.

His intervention turns up the heat on the Treasury, where ministers have argued that the government needs to hang on to the extra revenue from rising pump prices.

Mr Hammond revived the notion of a fair fuel stabiliser, designed to iron out expensive swings in the oil price, despite the opposition of some Treasury mandarins.

He said: ‘Nobody is suggesting there’s not a problem. There clearly is a problem. And it’s partly driven by Labour’s fuel duty increases but it’s partly driven by world oil prices.

‘We’ve got a Budget in eight weeks time. The Chancellor said at the last budget that we’re going to look at the practicality of a fair fuel stabiliser and he will announce his conclusions.’

He said the stabiliser – which would see fuel duty fall as oil prices rise – would ‘smooth out the peaks and troughs in the oil price so we don’t get pump prices shooting up one week and then dropping down again, two or three weeks later.

‘If we want to change people’s behaviour we need to send long term consistent messages and fuel prices spiking all over the place does not help.’

But Robert Chote, the chairman of the Office for Budget Responsibility, said a stabiliser would have a negative impact on the economy.

'Our summer analysis suggested that a fair fuel stabiliser would be likely to make the public finances less stable rather than more stable,' he told the Financial Times.

High fuel prices have already caused five per cent of road users to give up their cars altogether, while 48 per cent of drivers say they are using their cars less.

Government sources say Chancellor George Osborne is looking at plans to slash fuel costs for British truck drivers.
soaring cost of filling up

Ministers believe that would prevent a repeat of the fuel blockades in cities and on British motorways which brought the country to a grinding halt in 2000.

The plans being examined would see hauliers claim back VAT on their petrol and diesel costs – or see road tax cut for lorry drivers.

Foreign truckers could also be charged extra for using British roads in order to level the playing field for UK hauliers.

Those with a 10 lorry fleet have seen their fuel bills rise by an average of £14,000 a year.

But the Chancellor is under pressure to go further and use the budget to help ordinary homeowners and small businesses as well as haulage firms.

Andrew Cave of the Federation of Small Businesses said yesterday: ‘After two years of very difficult economic conditions, small businesses are not able to absorb the cost of fuel increases.

‘They are either having to cut back on investments they may have made in new machinery or freeze wages or possibly let staff go or, the vast majority are passing those costs on to the consumer which is indirectly fuelling inflation.’

Read more: http://www.dailymail.co.uk/news/article-1350021/Petrol-rationing-proposed-MPs-prices-set-hit-8-gallon-summer.html#ixzz1BxicQHsc

 

Petrol Prices To Hit £70 A Tank By Easter

Motorists' pockets will be hit even harder this year as petrol retailers predict the average cost of filling up a tank could soar to £70.

Planned government tax rises could see a litre of unleaded rocket to £1.36, while diesel could go up to £1.40.

Representatives from major motoring organisations are urging Chancellor George Osborne to scrap plans for a 5p rise in fuel duty in his April budget.

Already hard-hit families could face a total rise of 8p per litre at the pumps as oil prices also continue to increase.

Brian Madderson, chairman of the Retail Motor Industry Federation's petrol division (RMI), has written an open letter to Mr Osborne calling for him to "halt the relentless rise in fuel prices".

Mr Madderson said: "Our unequivocal recommendation is that the Government now abandon the fuel duty`escalator' principle as this is a legacy of your predecessors.

"We are mindful that the plan to increase duty yet again by 1p a litre in 'real terms' from April 1 will add a further 4-5p a litre to the retail price at the pumps for all grades of fuel."

Mr Madderson's plea is echoed by commuters and small businesses who are demanding action from ministers.

Campaigners say people will be unable to travel to work and businesses will suffer financially following the fuel hikes.

Elspeth Connolly, of Internet Unlimited LLC, told Sky News Online: "Some staff have been unable to come into work by car.

"People are really considering where they drive."

Motorists in West London say their day-to-day lives have been affected.

Merle Goll, 35, a designer from Twickenham, said: "It keeps you from making the short journey and this is something that we have had to cut down on.

"They're incredibly high, ten years ago I remember prices of petrol being around 68p a litre."

Kuluindesr Singh, 40, from Southall, told Sky News Online: "This time of the year prices have gone very high. Before, the money I was paying for a full tank now only equates to half a tank of fuel."

The Government is now facing calls to introduce their fair fuel price stabiliser policy, which would see fuel duty fall when oil prices rise, and then go back up when they moderate.

The policy was shelved after the coalition was formed.

John Walker, national chairman of the Federation of Small Businesses, said: "In opposition, the Conservative Party promised to put a fuel duty stabiliser in place - something the FSB has been calling for. But they have failed to deliver.

"As such, they are placing strain on already hard-hit businesses cash-flow. It is imperative the Government acts now and introduces the stabiliser to avoid a relentless flow of fuel duty increases that simply put small firms on a knife edge."

Some activists have called for a repeat of the crippling fuel strikes of 2000, when farmers and lorry drivers staged go-slow protests and refinery blockades that bled dry more than 90% of UK petrol stations - all because prices had gone above 80p a litre.

David Handley, chairman of Farmers For Action (FFA), who was part of the protest said: "I can see a fuel protest happening again very imminently and if it does, we will support them without a doubt.

"It is an unfair situation on the general public and they will be making a poor return on the money they pay for fuel."

Reports had suggested that Unite General Secretary Len McCluskey would back a strike, but a spokesperson for the union dismissed them as "rubbish".

Most fuel supplies are distributed by haulage contractors, who not only tender for the work, but also negotiate separate wage and condition deals with their drivers.

The Road Haulage Association (RHA) says the increase in petrol pump rises are "financially crippling" the way the association delivers its policies and looks after its members.

But it ruled out organising a strike, pointing out that new legislation allowed drivers' operators licences to be confiscated for taking part.

An HM Treasury spokesperson said: "In order to address the country's record budget deficit, it is necessary to implement the fuel duty increases already set and legislated for.

"Tough decisions are unavoidable and the Government has been clear that the burden of deficit reduction will have to be shared."