28.05.08 Government's approach to high fuel prices 'completely wrong'
Fuel protests across the country have forced the Government to hold emergency talks with oil companies today to try to persuade them to increase the supply of oil to the UK in an attempt to ease soaring prices.
Gordon Brown, writing in the Guardian today, called for "enhanced dialogue between consumers and producers, such as OPEC, in order to maximise supply streams." Business Secretary John Hutton has announced plans to allow further oil field developments in the North Sea, and Energy Minister Malcolm Wicks has also been talking in the media about possible solutions to the fuel crisis.
However, the one person who has stayed oddly silent on the matter is the only person UK motorists and hauliers really want to hear from - Alistair Darling.
The real cost of fuel is a fraction of the 115.1p and 128.2p current UK average, which has increased almost every day for the last 6 weeks. The price motorists pay at the pumps is so much higher because the tax rate on fuel is among the highest in Europe. The Government cannot control the oil markets, but it does have the power to reduce price instantly with an emergency tax cut.
This how a litre of fuel breaks down at today's prices:

This puts tax on unleaded at 67.5p and diesel at 69.4p. According to the Association of European Automobile Manufacturers fuel tax is around 31p in Spain, 45p in Italy, 48p in France and 52p in Germany.
The Treasury says that delaying or scrapping the 2p duty rise currently planned for October may be an option, but there is no commitment to address fuel tax until the autumn.
The solution to high fuel prices is an issue for the Chancellor not the Business Secretary - we've heard from Gordon Brown and John Hutton, but Alistair Darling has been silent. He clearly doesn't want to do another tax U-turn after the 10p fiasco, but the quickest and most effective way to reduce prices would be to scrap the VAT on fuel immediately.
Producing more oil is not the answer - and will only delay the problem of soaring demand. It will bleed us dry of our last valuable national resource and leave us at the mercy of the Middle East oil-producing nations.
The Government's response to high pump prices and the fuel protests is completely wrong, and shows they lack a basic understanding of principles a GCSE student could explain. An emergency tax cut combined with investment into alternative resources is the answer, but the Government actions show that either that the Treasury wants to continue to rake in revenue from already over-taxed motorists, or that Alistair Darling it too scared to stand up and confront the wrath of UK motorists.
11.5% of stations (847) are currently selling unleaded at £6 a gallon (131.9p) - that figure has more than doubled since Thursday (22.05.08).
The national average for unleaded smashed through the £5 a gallon barrier earlier this month, and the latest figures show that 99.9% of stations across the UK are now selling at or above this price (109.9p per litre).
The UK has now had 6 weeks of record-breaking prices where each day has broken the record of the day before. In that period national average price of unleaded has risen 7.3p, from 107.8p to 115.1p. Diesel has risen an eye watering 11.4p per litre in the same time, from 116.8p to 127.2p.
What do you think the Government should do about rising fuel prices? When will high prices stop you driving? Do you think the crisis can be resolved?








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The oil companies ie. Shell and BP are conning us!!!!!!
I use LPG in a 1998 Mondeo, I pay full Road Tax and I have to pay 9p a litre more in SIDCUP than I do when visiting in WATFORD. How come????
That is an 18%difference. Let PM Brown answer that Question.
Brendan, you are having a laugh aren't you.
" Producing more oil is not the answer - and will only delay the problem of soaring demand. It will bleed us dry of our last valuable national resource and leave us at the mercy of the Middle East oil-producing nations."
Producing more oil is not going to happen because we can't pump any more. You know that full well.
Bleed us dry of our last valuable national resource - get up to speed please, we peaked in 1999 and it's declining fast, and as for the Middle East, they are in business like anyone else and are in serious trouble at that. Their production looks like it has peaked too. And when their oil has gone, they have no other natural resources to fall back upon.
Isn't it time Brendan that you introduced a blog discussing how to deal with a declining energy economy, ie. one in which economic growth will not only cease, but contract? Or put it another way, less fuel at higher prices, how do we deal with that?
What follows will be inarticulate ill informed tirade after tirade expressing dissatisfaction over a problem that people just don't understand. Don't you think it's time they were put straight?
the government will not admit its the tax that is the real cost because they do not want to reduce the taxes.
they are making a mint a the moment.
so now they can afford that expensive holiday or kitchen at YOUR Expense.
he even said it himself oil was at $11 dollars a barrel during his time as chancellor now it is $135 a barrel.
and before MR Peak oil comes into this and say it is Peak Oil if he knew anything about the oil industry he would know that supply and demand will always equal.
there is no point in storing oil!
this is just an exercise to try and keep the misinformed happy.
i.e thoose that think it the oils copanies makeing loads of cash out of this.
the REAL fact is the Governments making the real cash!
Ladies and Gents it is time to put your coats and hats and get on the street and protest for LOWER fuel taxes to bring the cost to an affordable realistic price IE 69p a litre.
if they do NOT lower them then RIOT because that's what the French do and it works the government listens then!