18.01.08 The arrival of £5 a gallon diesel

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Do you think £5 a gallon is too expensive for diesel?


When petrol prices hit the £1 a litre mark last year motorists and hauliers were understandably outraged. However, the price of diesel went through the £1 a litre mark a long time ago, and has showed no sign of falling since. The national average price diesel currently stands at 109.3p per litre, less than 1p away from £5 a gallon. This time last year these pump prices were unthinkable, but today 43% of petrol stations nationwide are selling at, or above, £5 a gallon - we are fast approaching an era where this is the norm. How has this happened?

As little as 10 years ago, diesel and unleaded petrol were the same price – 63.3p per litre. Thanks to a combination of inflation, exorbitant tax and rising world oil prices, we can only dream of the days when fuel was that cheap, but it raises an important question – why is diesel more expensive than petrol today? Also, in the majority of European countries diesel is cheaper than petrol, so why do UK motorists have to pay more?

Graph of Diesel and Petrol Prices 1988-2008
Diesel cars became popular in the 1970s thanks to their economical and environmental benefits, but with diesel headed towards £5 a gallon, perhaps diesel users will be forced to rethink the switch, and consider whether or not they really are saving money. 10 years ago a diesel car doing an average of 40mpg, driving 9000 miles a year, would have cost £647.55 to run. Today the cost is a whopping £1125 – leaving a typical diesel motorist £477.45 out of pocket per year, compared to 10 years ago.

For haulage companies, who use much more fuel, the continually rising diesel prices leave them with an even bigger financial gap to bridge. Many are left with no choice but to pass the extra costs on to their customers, so as the price of diesel goes up, the cost of transporting food and other essential goods goes up too. Any further increases in the price of diesel could trigger the end of cheap food in the UK.

For once, government tax is not to blame for making diesel more expensive than petrol. Both types of fuel are subject to a fixed rate duty of around 50p per litre, plus another 17.5% VAT on top of the price of the fuel and the duty added together. Although it explains why the government collects extra tax from motorists when the price of oil forces increases at the pump, it doesn't help to explain why diesel is more expensive than petrol.

There are two main explanations for high diesel prices, aside from instability in the oil markets. Firstly, diesel prices in particular often peak over the winter because it is very similar to the fuel used in a lot of British central heating systems. As demand goes up, the oil companies can charge more, and the cost gets passed down the supply chain, to drivers. This happens every year, but with an extra 983,000 diesel cars sold in the UK's in 2007 alone, relying on diesel to oil our infrastructure could leave us in a very vulnerable position.

The second reason is only exacerbated by our dual reliance on diesel. The UK used to get a lot of its diesel from refineries in the Gulf of Mexico, but as production has slowed, the demand for the available diesel has shot up. In short, there is less diesel available from the UK's traditional supplies to fuel more cars and more central heating systems than ever before. Could this be a taste of what is to come when the last drop of oil finally dries up?

The government can't be held responsible for supply and demand in the energy markets, but they do have the power to ease the financial burden on those who use diesel by cutting tax on fuel. We rely on diesel lorries to transport essential goods around the country, and the world, so surely a tax cut for diesel vehicles would be good for the economy? Tax on both petrol and diesel in the UK is extortionate, and as world markets change it becomes clear that policies that might have made economic sense 10 years ago are in desperate need of an overhaul.

We allowed petrol prices to break through the £1 a litre barrier, and they have continued to rise ever since. The arrival of £5 a gallon diesel should be ringing alarm bells for motorists, but instead of standing up and using our democratic power to force Gordon Brown to address the situation, we close our eyes at the pumps and blindly hand over our credit cards. And if this cowardly behaviour continues we'll be approaching £6 a gallon before we know it.

Is diesel too expensive? Should there be a tax cut for diesel? Or should we be trying to reduce our dependence on diesel altogether?

Your Comments

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How can we use our democratic power if Brown won't call an election?

Filling in petitions on the prime ministers website does nothing - what this government needs is a reminder from hauliers and farmers taking action - blockade the depots again, bring the country to a total standstill like they did 8 years ago.

Remind Brown that the motorist/haulage industry is not a cash-cow to be taxed until it hurts, then taxed and taxed again.

We need competitive haulage rates to curb inflation as distribution costs affect the price of everythign - and provide jobs to our truck drivers - and with the current taxation on fuel, our hauliers cannot compete across Europe, and the price of everyday goods is set to rise.

Posted by Tom Marshall, 21st January 2008 11:00am

I agree that another blockade is sorely needed.

In the meantime, why not make the switch to Biodiesel, currently retailing at your local supplier for 82.9p (thanks to NO tax insentive by the government like on LPG).
Most diesel cars will cope with a 50/50 mix and my Mazda 6 TS TD will run on 100%, although it doesn't like cold starts anymore (It looks like I'm electing a new pope with all the white smoke).
I have noticed NO lack of performance and NO change in fuel consumption.

Another pain is that, even though my emmissions are FAR lower than on mineral diesel, I still get stung with £170 tax every year.

Posted by Brian Polkinghorne, 21st January 2008 11:15am

While I accept the argumenst about the large on-cost to hauliers and the rapid price inflation, I think the two greatest concerns about diesel prices are as follows:
1) Our government taxes company cars based on their Co2 emissions and recognises diesels to be much more fuel efficient, better for the environment and therfore taxes them at a generally lower rate. Yet when it comes to prices at the pumps the government does nothing to recognise this same fact.
2) The UK is the only European country to charge so much more for diesel compared to unleaded. The only two other countries who charge fractionally more for diesel are those motoring giants Switzerland and Slovakia. In many countries diesel is 10% less than petrol. Is our government trying to tell us they have got it right and the rest of Eruope has it wrong??? Why do we put up with it, or is it that wer all go price-blind when we travel abroad?

I think all hauliers and diesel drivers should find a common voice and start lobbying hard for common sense to prevail.

Posted by Neil Russell-bates, 21st January 2008 1:25pm

I thought a fuel protest was going to happen, i gather its not going to happen now

Posted by Robert Wild, 21st January 2008 1:25pm

I am currently now paying over £30 a week to just do 180 miles, and that is 99% motorway driving. The price of fuel is rediculous, and why should the government take so much in tax!!

surely they would be better off reducing the taxation on fuel, and using the pot of money they have lying around for emergencies so it avoids the strikes, and motorists don't end up wasting money cos the governement want 1 extra holiday a month!!!

Posted by Sam Cox, 21st January 2008 1:27pm

The idea posted by Brian Polkinghorne seems sound - as my car manual specifically states it's fine to run it on bio-diesel, but gives a list of standards to which the stuff must meet (all EN stuff if I remember correctly). Why don't we start compiling a list of places where this stuff can be got - it's it's 30p/litre cheaper that will surely save us all a fortune.....I'm not looking forward to when it costs £100 to fill the car up....

Posted by Dan Delamare-lyon, 21st January 2008 1:28pm

This is a nightmare for the average person.

What can we all do collectively to stop these price rises? Why are the transport companies sitting back and taking it too?

Posted by J Ridyard, 21st January 2008 1:30pm

Houses have DOUBLED in price over the 10 years that fuel INCREASED from 63.3p/litre to whatever it costs now. But the public whinges only when the price of houses goes down. Funny how selective we are about prices rising.

Posted by Al Hanson, 21st January 2008 1:32pm

The haulage industry provides a great service to the UK.
without it nothing would be in our shops, life wouldn't be the same.
if you consider what is being moved by a lorry its relatively efficient,
why not allow the haulage industry to use red diesel?.
Just a thought.
it would make it much more profitable and allow competition.
boosting our economy.

Posted by Rob E, 21st January 2008 1:32pm

The only way to get the government of "Rip Off Britain" to listen is to bring the country to another stand still as 8 years ago, we have to stand up for our right to voice ourselves and make ourselves heard.
I truly support all farmers and hauliers to blockade depots, and for what use a car would be would happily park mine with them!!! we have to stand together this is getting way out of hand now.

Posted by Steve Parker, 21st January 2008 1:33pm

i work in the nhs, and average 300miles a week to work and look after people for naff wages, and now it costs a bomb to fill my car up to get there, we need to take drastic action such as blokades, in the last 2 weeks tesco keep sticking the odd few pence on and we all pay it????????

help, somebody, plz

Posted by Paula Singleton, 21st January 2008 1:37pm

there are a lot of people who are just on the border line of keeping there cars that look forward to the week end of visiting place's but the increase has put those people back to the 50's where it was a rare thing for a family to have a car . i thought the whole i dear of progress is to go forward ? people up the top [ mp's ] dont have to worry about getting to work because they are subsidise people down the bottom havent got that wish and some loose there jobs with out a car . they all say ye we remember the old days if it lasts in there minds for ten seconds to them its a long time. instead of wife swop ask them if they would like to do JOB SWOP. dont think so good luck to all.

Posted by Mark Smith, 21st January 2008 1:41pm

The only way to protest is to hit them where it hurts. Nationally, we should protest by not buying any fuel for at least one day of the week (more than one day of the week would be even better). Or perhaps we could boycott certain petrol stations/supermarket petrol stations on set days. Surely this would achieve something. It's better than just sitting back and keep accepting it?

Posted by Kerry Udall, 21st January 2008 1:41pm

We live in Hampshire and my husband works in Surrey. He spends over £80 per week on diesel and the company he works for do not pay anything towards it. This is so unfair!

Posted by Sue Cook, 21st January 2008 1:42pm

I'm with Steve Parker!! (21st January 2008) We stood alongside the hauliers and farmers last time and would do so again. This is the only way to get the government to listen. We live where we have no option but to use a vehicle and the fuel costs are crippling us.

Posted by John Steward, 21st January 2008 1:43pm

Which people voted for NO when they said petrol prices are not to expensive? Are you mad?

1995 I paid around 40p per litre and there was a huge fuss because this price was blamed on the Gulf War. Who do we blame now?

Someone is getting very rich off this and it certainly aint us.

In 7 years my monthly fuel bill has trebled to the point where I am going to have to give up work and sign on. Local jobs pay nothing so I have to travel. How many more people are going to be forced into giving up their jobs due to the fuel costs?

The government and the fuel companies know we will still drive our cars regardless of what the price is, so they charge what they want.

I heard Jeremy Clarkson champion the fact that petrol was actually cheap at £1 per litre! It's not cheap you fool, it's £5 a gallon....the real price of petrol not some European measure to bamboozle the UK into thinking it's cheap.

Posted by Steve Mason, 21st January 2008 1:45pm

This is getting ridiculous now. The trouble is the government does not give a damn until something extreme happens. Mr. Brown kept taking away from the public and now his successor is following suit. I think it is high time that we took away the government from this lot to give them their own back.

Posted by Rajesh Varadarajan, 21st January 2008 1:47pm

we should have a fuel blockade and I for one,being on state pension, will be there supporting it. Blockaders should not take too much threats about police arrests only let's do it when it will bring UK to a near halt maybe,just,maybe the government may drop it's 60%+tax take from the hard done motorist

Posted by Colin Miller, 21st January 2008 1:52pm

I agree that petitions do nothing - this government definately need hauliers drivers, and farmers taking action - blockade the depots again, bring the country to a standstill. Lets work together!
Write to your MP. Bring the issue to the ballot box, put it on the political agenda!

Posted by Ray Davis, 21st January 2008 1:53pm

@ Al Hanson (No8)
The equity from House prices is never realised by the average home owner (as the next house is equally expensive), the only people who really benefit are those moving from inner city areas to more rural retreats and of course property developers.

This shouldn't be used as a direct comparison to on-going costs such as fuel prices.

If wages had followed a similar % rise as fuel prices then I would agree - house prices, nothing to do with it.

Posted by Peter Parker, 21st January 2008 1:55pm

This government's policies are leading us down a road that just keeps getting narrower and narrower. The price of fuel is just one tactic they are using to drive traffic off Britain's roads.

Very soon it won't be possible to drive your car anywhere useful anyway, not without being taxed to the hilt; be it through road charging, congestion charging, parking restrictions, road fund license increases or the ubiquitous rising fuel duty.

Only one thing looks certain, financial barriers or "disincentives" (as they are so often referred to) are only set to increase in future, both in prevalence and magnitude.

It seems that rather than using transport as an enabler of commerce and trade, as a means to fuel our economy, this Government would rather use it as a short-term revenue supply, while generally hiding behind the mother of all excuses, "preventing climate change and protecting the environment".

I wonder how long it will be before the Treasury resort to describing all road users as a potential terror threat and introduce new surveillance taxes to ensure our road networks are safe for the one remaining group of users (and only other constant in this equation) - the workmen and their cones!

Posted by Paul Neale, 21st January 2008 1:55pm

We are hitting £106.9 a litre in some areas now, soon we will be faced with paying £1.10 a ltr. How about this for an idea;

This makes MUCH MORE SENSE than the 'don't buy petrol on a certain day campaign that was going around last April or May! The oil companies just laughed at that because they knew we wouldn't continue to hurt ourselves by refusing to buy petrol. It was more of >an inconvenience to us than it was a problem for them. BUT,whoever thought of this idea, has come up with a plan that can really work.

Please read it and join in!

Now that the oil companies and the OPEC nations have conditioned us to think that the cost of a litre is CHEAP, we need to take a ggressive action to teach them that BUYERS control the market place not sellers. With the price of petrol going up more each day, we consumers need to take action. The only way we are going to see the price of petrol come down is if we hit someone in the pocket by not purchasing their Petrol! And we can do that WITHOUT hurting ourselves. Here's the idea:

For the rest of this year DON'T purchase ANY petrol from the two biggest oil companies (which now are one), ESSO and BP.

If they are not selling any petrol, they will be inclined to reduce their prices. If they reduce their prices, the other companies will have to follow suit. But to have an impact we need to reach literally millions of Esso and BP petrol buyers. It's
really simple to do!!

Now, don't wimp out on me at this point... keep reading and I'll explain how simple it is to reach millions of people!!

I am sending this note to a lot of people. If each of you send it to
at least ten more (30 x 10 = 300)... and those 300 send it to at
least ten more (300 x 10 = 3,000) ... and so on, by the time the
message reaches the sixth generation of people, we will have reached
over THREE MILLION consumers! If those three million get excited and
pass this on to ten friends each, then 30 million people will have
been contacted! If it goes one level further, you guessed it... ..

THREE HUNDRED MILLION PEOPLE!!!

Again, all You have to do is send this to 10 people. That's all.(and not buy at ESSO/BP) How long would all that take? If each of us sends this email out to ten more people within one day of receipt, all 300 MILLION people could conceivably be contacted within the next 8days!!! Acting together we can make a difference If this makes sense to you, please pass this message on.

PLEASE HOLD OUT UNTIL THEY LOWER THEIR PRICES TO THE 69p a LITRE
RANGE

It's easy to make this happen. Just forward this email, and buy your
petrol at Shell, Asda,Tesco, Sainsburys, Morrisons Jet etc. i.e.
boycott BP and Esso

Posted by Alan Smith, 21st January 2008 1:56pm

when petrol and diesel prices first started to rise(no way near the price now)the haulage contractors were up in arms about it and created road blocks and go slow movement,why aren't they doing the same now it has risen 4/5 times the ammount it was then,have these same guys taken a bung off the government

Posted by Fred O' Brien, 21st January 2008 1:58pm

What makes me laugh is the fact that the government keep saying that what they want is to get people out of cars and onto public transport, but is really? They would lose billions in tax every year if we all did that. Not to mention a public transport system that would completely grind to a halt under the strain.

Posted by Chris Jermy, 21st January 2008 1:59pm

I think yes petrol prices are far too high, but it's just one of many things increasing at the moment and have to "put up and shut up".

The price of rent, utilities and transportation goes up every year, but I don't all of a sudden decide I'm going to boycott TFL and walk the 8 miles to work everyday.

The thought of another boycott is absolutely outrageous and I for one would not be in support of this. How dare people threaten to bring the country to a standstill because of the rising price of petrol - all it does is turn "Joe Public" against them.

How could panic buying, companies coming to a sudden halt and people in general losing salary pay because they can't get to work be a good thing?

Protests are effective, but only done in the right way, and hauliers blockading depots is not the way to do it.

I think brain over braun is needed in this case.

Posted by Jemma Browne, 21st January 2008 2:03pm

Surely the 'high' cost of diesel and petrol is a good thing? If it encourages us to use less, or at least think about every journey we do, then that may help at least delay Climate Change and Peak Oil. But the tax should be diverted to creating a world-class public transport system - trains and trams to every town and village, freight switched to rail etc.

At the end of the day if the tax 'burden' on motorists is reduced then where is that extra tax going to come from? VAT on food? Reduced services? And as for the poster who thinks the government have an emergency fund - he must be living in a dream world. This idiot government has run up huge debts in the trillions.

In reality petrol and diesel - both here and in most other countries - is outrageously cheap. It will never be this inexpensive again - all we can do is change our lifestyles so we no longer need to use cars. But the government - whoever it is - needs to make that easier.

Posted by Panther Wildweather, 21st January 2008 2:03pm

Yes fuel prices are far too expensive, and we should all do something to send a clear message to Gordon Brown and his hangers on in the so called goverment, that enough is enough. I have recently quit my job which i loved by the way for one closer to home. One of the reasons for this was the crippling cost of diesel for my 90 mile round trip commute. I have tried everything in my power now and this includes getting rid of my petrol car for a far smaller diesel one. This i thought would go a long way to help, but as the prices at the pumps increase my actions seem to have been in vain. What does the Goverment want us all to do? It seems to me that they will not be content until the rest of us have been priced off the roads, so it leaves them clear for them to travel along in their large gas guzzling cars. Maybe it is time to stand up for ourselves and not pay these crazy prices.

Posted by Kevin Halpin, 21st January 2008 2:04pm

i whole heartedly agree fuel is getting ridiculously priced and we need to be seen to stand up and say enough is enough . i have had to give up useing my car for trips on my own nowaday,s . its only a 1.6 and if driven sensibly i can get 35 /38 to a gallon out of it, a car designed to carry 5 people and only me in it wheres the sense , i now ride a motorbike to work in all weathers, to visit friends and for small shopping trips . ok i,m open to the elements , weather, idiots who dont look properly in cars vans lorries etc but its made me a lot more aware on the the road and i get 50 plus to a gallon. now i,m not saying we should all get out and ride bikes but lets be seen to be standing up for ourselves and show the government that as a motorist we are not going to be an easy target

Posted by Dave Spong, 21st January 2008 2:05pm

I live in the sticks and am also on a state pension, therefore I need my car to get from A to B. The rising price of fuel takes a sizeable chunk out of it which means I and others like me have less to spend on food.

The government should drop its'60%+ tax on fuel to help all its' citizens or am I just dreaming???

Posted by Mr John Woods, 21st January 2008 2:11pm

Would the blockades work??????

Yes this would make the government take notice but they realise that this will only be a short term action. This would then give them the power to increase fuel further understanding our demand.

What this government really needs is to be held accountable for there taxing policy and the only way to do this would be to ensure they do not serve another term in power.

Posted by Anthony Smith, 21st January 2008 2:11pm

What's all this fuss about fuel duty? Surely the people must realise by now that anything which might be of benefit is worthy of taxation. Governments, of whichever persuasion, are always on the lookout for extra revenue opportunities - one of the latest being "The Environment and Global Warming" - providing yet another opportunity for Chancellors of the Exchequer to rob us yet again with unfair, swingeing, taxes in the form of the once-called Road Fund Licence. (What happens to that money - it certainly is not spent on the roads)
Strike! Strike! Strike! Hit them where it hurts - kick them out, by fair means of course, and the sooner the better - and may the next lot abolish those highly lucrative pension schemes. Remember, many politicans have no concept of a working life!

Posted by Chris Howell, 21st January 2008 2:12pm

Blockade .The goverment was really worried last time

Posted by Rod Harding, 21st January 2008 2:15pm

What this situation needs is a good kick up the backside to bring it to the forefront of the nation's attention. We are currently all doing the usual British thing - we whine about it but we actually do nothing. This issue needs centrally co-ordinated action, because our words are just so much hot air to the policymakers. Much as a blockade or similar direct action would personally inconvenience me (and it would, quite badly), I would support it to the hilt.

It's no good boycotting BP/Esso or any other supplier because their ability to reduce prices is limited by their requirement to make a profit, however small. The vast bulk of the insane price of fuel is accounted for by tax, so that's where any reduction must be targeted. A simple freeze on fuel tax increases, such as we saw 8 years ago, is insufficient - only a tax cut will do, and a substantial one at that.

Posted by Dan Stock, 21st January 2008 2:17pm

Ok I'm not sure how accurate this is but I work in oil idnustry and no one has told me differently yet. The price of a barrel of oil is based on the US Dollar with it being so weak and the pound so strong this why the price has gone up so much over the past year. What the oil giants are going to do (and no I do not know when I'm afriad) is use a standard price rate instead of the dollar. The 6 top fuel users in the world will have an average worked out on how much they use and this will determin the price per barrel rather than just using what the dollar dictates. This means that the price of a barrel is going to fall alot. However and here is the clincher it is still up to the Government to reduce the price we pay when this happens. I'm guessing this is not to widely known or talked about at the moment, and like I said I do not know exactly when this is happening.
For all thoes people sending round an e-mail saying just pic 2 companies to boycot ie BP and Shell, it might be worth finding out who supplies Asda, Tesco, Sainsburry ect as I know they dont own oil fields! It is the government that determines the price we pay not the people that own the petrol stations its them we have to boycot.

Posted by Dannie, 21st January 2008 2:20pm

In response to Item 22 posted by Alan Smith, I agree that this could work but personally I buy from Asda as their credit card offers 2 pence off making it just under 1 pound a litre. Due to this I am always buying from them rather than Tesco for their points. These two supermarkets offer me the best price in my area and as such, never purchase my petrol or diesel from an actual fuel reseller such as BP or Esso etc as they charge so much more. Maybe if there could be some agreement on which supermarket we should buy from I think you would find most people would participate.

Posted by Stuart Heathwaite, 21st January 2008 2:22pm

I am usually against direct action but, whilst the price of crude oil influences the position to some extent, the effect is exacerbated by UK taxation.

I support the idea of a well organised blockade in the absence of an early opportunity to vote out of office this rotten and incompetent government.

Posted by David Begley, 21st January 2008 2:23pm

If Biodiesel is cheaper why can the petrol retailers just sell that for now?

Posted by Andrew Osiname, 21st January 2008 2:24pm

We are cursed with a governement that would be hard put to organise a booze up in a brewery. Fuel price are just one of many reasons to vote these treacherous so and so's into oblivion i.e. failure to hold a referendum on the EU constitution/treaty (it's the same thing), Home Information Packs, the speed camera rip off, Browns raid on pension funds, Iraq, handling of the Northern Rock which will cost us all in tax, rising crime rate and so on and so on. The present levels of tax on fuel are a national scandal and will severely damage the economy.
I fully support fuel protests. Nothing else seems to make this arrogant governement sit up and take notice but they have to be sustained. Perhaps we should hold the opposite of a one minutes silence in protest i.e. a national 1 minutes horn blowing at a designated time. The noise across the country would send a strong message.
Buying the cheapest fuel is one answer but prices are subject to regional variation in any event and finding a cheap outlet is not always practicable.

Posted by Phil Deacon, 21st January 2008 2:24pm

The government are trying to get people to use cleaner fuels, Diesel being one of them. Surely it makes sense for the government to keep the price of diesel lower than that of petrol as this should encourage the adoption of diesel powered cars. Is it just a conspiracy theory or are the government also exploiting the green minded members of the public who are trying to do their bit for the environment?

Get Brown out & get in somebody who appears to have some common sense (guess we better look further afield than politicians for this valuable attribute)!

Posted by Kris Jones, 21st January 2008 2:26pm

I would like to see petrol/diesl hit £15/£20 per gallon. This would eliminate most of the unessential vehicle usage from our roads. Vital traffic such as police/ambulance/doctor/distribution etc would qualify for repayments on amounts used. It would also help the environment and speed-up the provision of alternative transport methods (vehicles running on electric/ water etc.) The use of current fuels such as petrol etc., are now outdated and very old hat. It is about time we modernised and revolutionised our travel habits.

Posted by Din Dober, 21st January 2008 2:27pm

I now have to think twice before I make any journey in the car, although it is petrol, I am now paying £1.04 per litre. On a pensioners fixed income I have to be very careful when I fill up.

Posted by Alec Bliss, 21st January 2008 2:28pm

Mu mum is in hospital at the moment and I'm finding it hard to find the money for fuel.................

I agree this is far to expensive...............I show dogs and this has hit me hard I can't afford to go to as many shows as I used to................

Posted by Alicia Wilson, 21st January 2008 2:30pm

I thought id use this forum to point out what i feel is a complete con by the government. We all accept that they must raise revenue through taxation on fuel but the steady increase in the cost of petrol & diesel due to increases in oil costs need not all be passed on to the consumer.
With petrol at , say £0.80 per litre the government would raise a level of income that it deemed sufficient to provide the relevant services. With petrol increasing to £1.05 per litre (in less than 2 years) the government is now raising an additional sum equating to the tax on 25p for every litre of fuel consumed. This increase is colossally in excess of inflation and could be used to effectively subsidise fuel costs. Alternatively it should be made clear where this additional money is actually going.

Posted by Steve Connell, 21st January 2008 2:34pm

Yes, well it's all very well pontificating on the subject of high fuel prices but no body in this country will get off their arse and do anything about it. If I tried to organise some kind of protest no one would turn up! If this were the US or France they'd have been mass protests by now. But never mind, put your feet up, switch on the telly and pop a pizza in the oven - £10 a litre here we come . . . .

Posted by Bunghutcher, 21st January 2008 2:34pm

As a motoring journalist of some 45 years I find it hard to see why the UK Government has to continue to raise fuel tax when the in come from VAT and tax brings them additional revenue whenever the price of fuel rises. There is again no justification for oil companies to increase prices as I have just returned from a European trip and found Luxembourg, Austria and Switzerland all selling diesel at less than £1 a litre. This Government will FALL at the next General Election and perhaps an alternative Government will see reason and lower prices to a more reasonable level, after all they are hitting pensioners and businesses alike so costs overall go UP!

Posted by Paul Youden, 21st January 2008 2:37pm

It's probably not a popular view but let's try to be rational about this:

Taxes are used by the Government to pay for services we demand - if it's not fuel that's taxed then it'll be something else and there's no point in pretending otherwise.

GB & cronies could be more honest and say something like:

2p of each £1.00 of fuel tax is spent on road building and maintenance
3p of each £1.00 is spent on "safety" measures such as speed cameras, road calming and bus lanes

The rest pays for NHS, Government, Civil Service and everything else.. but you *do* have to pay for it somehow.

Why don't we instead tackle the international oil conglomerates who are making obscene profits? - I'm sure we've all seen that the US dollar has been at its lowest against sterling for decades. Crude oil is bought in US$ - diesel in the UK is bought in £Sterling - surely more dollar equivalents = more oil?

Posted by Gordon Martin, 21st January 2008 2:37pm

I agree with all your comments and would support any stance made against these every increasing fuel prices...
12 months ago, my fiance and I bought our first house, after saving for over 4years to get the deposit together. We couldn't afford to buy a house in the area we would've liked to have lived, so we took the hit on our commutes to work to get us on the first rung of the property ladder. I now do a 100 mile/day round trip commute to work and these fuel rises are really starting to hit my fuel costs - soon I shall be forced to find a new job!

Posted by Anna Y, 21st January 2008 2:39pm

The government - which this is one is supposed to be 'for the ordinary people' - has had every opportunity to protect us from this to a significant degree. Instead they are profiteering - as tax rises as percentage of price rises. In fact tax element is far greater than fuel cost element at the pump. time to say NO. Blocking/any form of civil protest is absolutely required. Anything from stickers to marches is needed to make them see reason. And do not let them hide behind 'envoronment' - this is the government fleecing its own people. Not even Soviets dared.

Posted by Mark Olbrich, 21st January 2008 2:41pm

The only pm not to have an election cos he thought he would win it?Brown!Looks like he shafted us as chanceller passed his winning ways on to Darling(what a name lol)
Fuel costs will not come down,& as for annother fuel blockade,ask the hauliers about their road tax reduction bride from the last blockade,stand alongside them? not on your nelly,
Become french lets all stand together until something is done,oh no aint we brits,well we dont do that do we?
Could go on for hours,you know nation service for the youngsters an the like,capital punishment, Richard branson for pm, etc etc,
If ya wann live here put up wi being shafted of export ya self to europe,


love the uk, or is it yuk?

Posted by James Stevens, 21st January 2008 2:41pm

The trouble is as much as people don't like it you've got to realize that if
you're trying to fight our govenment you'll never ever win because there
is too many of them with their fingers in the pie so we have no chance at all.

Posted by Phil Parker, 21st January 2008 2:41pm

Price of this price of that, it is all perceived value.We are a rich society compared with most people in the world and those in charge are never going to let enough people get angry enough to really threaten them so on it will go until enough people revolt.
Thereis another way and that is to make your own choices. I dispensed with flash BMW years ago and now I only every buy cheap second hand cars. If you buy carefully you can get a good car for under five hundred pounds.No need to get fully comp insurance, no-one will nick it or pay for extensive repairs if anything goes wrong, you just replace the vehicle.Most people eat too much so a reduction in the cost of food could amortise other expenditures.
If via the world of blog enough people in a district could be persuaded to apply a significant downward buying pressure and the media wrote about it nationally the powers that be MIGHT do something about it.If soemone, maybe a student with time, was to show which vehicles are worst in respect of hitting the pocket that might help.
Key thing put pressure through your own actions by using alternative transportation systems and if you do not get good service apply continual interpersonal criticism on the individuals in the businesses seeking to serve.
I do sense a growing pressure from individuals and just watch what may happen when the council taxes all leap up, which they will.

Posted by Alfred Graham Burgess, 21st January 2008 2:41pm

This situation is being allowed to spiral, in my opinion by our own lack of protest.

Blockades are good but I think boycotting retailers is a far better option.

I wish someone would set up a website, we all log in and see the suggested retailer to be boycotted, say for an entire month. Why not even two retails at the same month.

If we all stuck collectively together the supplier(s) - say Tesco's and ASDA for example would soon be pretty peed off.

Surely then the likes of the big retails would be voicing their opinions in unison with the public. As it is they simply hike the price blame the government and stay out of it.... Blockades stop the retailer getting the fuel, but when they do its life as normal....

If we avoid them then surely this hits them like it's hitting us. It forces them from being the middle men to having to decide on what grounds the want to be?

That's my thoughts anyway.

Perhaps I will set up that website? Anyone interested in the idea? ;-)

Posted by J Lewis, 21st January 2008 2:42pm

Oil has fallen $10 in last couple of weeks but I dont see any downward movement at the pumps!

Posted by D Wright, 21st January 2008 2:44pm

I agree in principal with all the points raised and answered; but I fear that a blockade is NOT the way to get this government to look again at fuel prices. The problem with a blockade is that it alienates the general public after a short while, which is where we need to get the sympathy vote. I do not have an answer to this ever-increasing problem, perhaps someone out there has, but blockades in my opinion are not the answer.

Posted by Jim Yarwood, 21st January 2008 2:44pm

I fully support the idea of direct action being taken to make not just these politicians in government take notice but all politicians in this country as it doesn't matter who is in power, the end product is always the same, a never ending increase in the cost of fuel at the pumps.

I travel to Heathrow 4 days out of 8 to work. Of that journey I use the bus for approx two thirds of the way and my car for the rest. It regularly takes me longer to drive the 20 or so miles to and from catching the bus than the bus journey itself! My point being that if some sort of roads infrastructure improvement was seen to be being done then maybe, just maybe, the extra tax on fuel could be justified. And when I say infrastructure improvements I mean all the fuel tax profits and road tax profits being spent on making our journeys that bit less tiresome not being shuffled around to prop up some other government departments on a free handout from motorists.

Posted by Hugh Wright, 21st January 2008 2:47pm

I'm definiately interested in J Lewis's suggestion of a website

Posted by Jim Yarwood, 21st January 2008 2:47pm

This time last year I was paying 93p a litre, now it's 1.08p. As a courier my fuel bill has now increased by an additional £1000 a year. Gordon talks about curbing inflation and keeping public sector wages in line with 2.5%. With House prices over inflated and fuel costs going up again in April as part of the budget, them maybe he wants to revaluate inflation parimeters???

Posted by Ade Mosley, 21st January 2008 2:48pm

We are all suffering due to the rapid price increases of fuel, if not by car fuel costs then by increases in public transport fares. This is in addition to the recent escalating home heating costs. The consequence will affect our cost of living, therby create inflation problems. I cannot agree that we should blame the politicians because this situation would be inevitable whoever is in power. I feel those who are able to economise on fuel use should do so, such as the retired people like myself. Take local holidays, cut out unnecessary car journeys and lower the room thermostat.

Posted by Wesley Saunders, 21st January 2008 2:51pm

I'm afraid that Mr Brown has managed to introduce a hidden tax for every day the Labour Government has been in power, so I understand. Has anyone noticed that even doctors now have to charge VAT? But, the British public seems to be blind to the fact. Unfortunately, I can't see any other Government doing any better. They all see the motorist as a certain source of income. They could put it up to £10 a gallon and we would still have to buy it, petrol or diesel. It needs a concerted effort to get one producer to lower their prices, and then the others might follow, but you'll never get the public to combine to get it done.

Posted by Derek Brooks, 21st January 2008 2:53pm

As a driver of a company car the week to week impact of fuel price rises is somewhat lost on me, however, I paid thousands last year in tax for the car/fuel I used. If fuel were cheaper, it would end up having a benefit in my salery every month.

(note to Brendon) It is surely worth including fuel prices from supermarket forecourts. They are still cheaper than some of the petrol stations quoted in the regular updates.

Safe driving, Alan Bradwell

Posted by Alan Bradwell, 21st January 2008 2:53pm

In America fuel prices are adjusted daily. ie if oil prices fall one day, the following day so do the prices. Last week oil prices fell from $100 dollars a barrel, to $90 dollars a barrel. Did the fuel prices fall accordingly, no they went up another penny a litre. We are being taken for a ride big time. Time for action i think.

Posted by David Abbott, 21st January 2008 2:54pm

Supposedly a green tax. For years successive governments have suggested they are being environmentally friendly by heavily taxing fuel whether it be electricity, gas or petrol. Shame Gordon's now travelling the world trying to increase trade with countries an enormous distance away from us. If emmissions are that important we would all try to buy locally as much as possible and the government would tax those packaging companies which produce waste, not the consumer who in Britain is highly unlikely to take any action at all. So now we pay a fortune for our household bills but climate change will not improve. Surely the problems we have parking alone discourage unnecessary use of our cars without all this tax. This tax doesn't discriminate between the wealthy and those struggling. A blockage or protest is unlikely to happen, but if it did I would support it. It is one of the few things that has got the government to listen about this issue - but their memories are so short they are letting the prices go even worse. And fuel duty is due to rise again in April.

Posted by Rachel Battersby, 21st January 2008 3:05pm

The government claim that part of the high fuel price is to encourage people to use public transport, what about those people who live in rural areas? We are the ones hardest hit by higher fuel prices and we are also the ones who can't use public transport because it's so infrequent! It currently costs me £10 each day to commute 45mins each way to work by car- if i were to use the buses i would have to get 3 different buses each way at a cost of £16 and it would take 3 hours each way! People who live 5-10 miles from work etc will never be affected like that and will usually have a choice of public transport if they choose to use it.

we pay too much fuel duty - simple as that. The government should reduce the fuel duty and simply have less money- anyone remember the £100million or so they blew on that daft millenium dome? Not exactly neccessary was it? If they simply reduced the amount of cash they waste they wouldn't have any justification for taking so much from us.

The only thing that will make them listen is to bring the nation to a standstill again. I would support such action fully.

Posted by Pete Martin, 21st January 2008 3:07pm

Truth be told inflation has to get to Zimbabwean levels before punters will riot in the streets.
It would be a start if we went back to selling petrol in gallons. The EU says we can.

Posted by Graeme Reid, 21st January 2008 3:07pm

Blockade until GB calls an election.

The price of Diesel definitely needs to be reduced. Not by drastic amounts, but certainly under the £1/litre figure.

Posted by Darren Pullen, 21st January 2008 3:15pm

High diesel costs hurt everyone, not just owners of diesel cars. 99% (at least) of everything we buy has been transported using diesel, and transport cost are built into all retail prices.
Cutting the tax on diesel to bring the retail price below that of petrol would help everyone ... and if brought down to continental prices it might just stop the owners of those gigantic Eurotrucks fitting 200 gallon tanks so that they can deliver over here and be out of the UK again before they need to fill up.

Posted by Dave Bailey, 21st January 2008 3:18pm

You make many valid points.

But please don't ignore inflation and growth in incomes - it just makes the story look deliberately incomplete. Yes the motorist with a diesel car will pay more, but average earnings have increased 49% from 1997 to 2007, so it is not as bad as you make out.

Posted by Stephen Dawson, 21st January 2008 3:18pm

I have worked for petrol stations for over 10 yrs and have now retired.
I have got an idea that would force petrol stations to put their prices down within weeks.
However, the cost per motorist will be between £2 to £3 to purchase the item.
Ever motorist and truck driver will be willing to do this. Even the police would be pleased as this would be very peacefull. Even they would join in with their private cars.
Working for£4 to £6 per hour at a Petrol Station all these years means I do not have the finance to back my idea.
Any suggestions would be welcome.

Posted by Don Gonsalves, 21st January 2008 3:18pm

the rising cost off fuel now means i now seriously have to think about my work arrangements and whether i need to change my job.

£106.9 is the cheapest i can currently find in my area which mean i'm now paying over £150 per month in fuel to work alone.

in reality whatever action needs to be taken to resolve this needs to be done before the prices cannot be changed back

Posted by Ryan Parker, 21st January 2008 3:19pm

I just feel that we are being sold down the river I'd better buy some roller skates can't afford these prices

Posted by Sanjit Saha, 21st January 2008 3:20pm

We are being held over an "oil barrell" (excuse the pun) and organising blockades is all very well but I feel the government will not listen and we will all have to back down in the end. Unless it went on for a long period of time which will then get everyones backs up I don't think it will achieve anything. Our work and lifestyles today are such that everything and everyone is transported by one means or another. I hope something happens soon or technology moves to such an extent that engines and fuel are designed so that we can purchase them at cheaper price so we do not have to be so reliable on oil.

Posted by Kym Jarvis, 21st January 2008 3:20pm

Fuel tax is yet another nail in the coffin for the small & big businesses.I think I agree with increases for pleasure motoring,it's non essential,we have a choice on wheather we use the roads or not,but businesses involved in any sort of transportation do not have a choice and should at least get tax allowence on fuel costs.

Posted by Dick Packham, 21st January 2008 3:20pm

Well the £5 diesel gallon has arrived in this part of Pembrokeshire Our local garage has it posted at 110.0p/litre. I suppose they have to raise the money for Northern Rock somehow.

Posted by Ken Dalziel, 21st January 2008 3:21pm

Everyone is talking about the rising costs of our fuels and when it will start having effect on what we buy. It's already taking effect but no-one is paying attention. The whole country has its head in the sand with Brown and his buddies pushing us more and more towards another ECONOMIC DEPRESSION.

This has to be addressed and no-one seems to care, it's all just taken for granted

Posted by James Morrissey, 21st January 2008 3:21pm

I visted France before Christmas and filled up at the Supermarkets and noticed that the price of diesel was a lot less than petrol and much less than we pay here in the UK. If the French can do this than why can they not do it here.A simple answer really we are a placid race and this leaves ourselves wide open to to be plundered by companies who put their investers before the customer. Will we ever have the guts to stand up and be counted.

Posted by Jamie Cafe, 21st January 2008 3:22pm
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