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.'

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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.