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.

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* 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%.
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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

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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.'