Apr 19, 2017
Early on Tuesday morning, Prime Minister Theresa May revealed her surprising decision to hold a snap general election. The Prime Minister has said it will create certainty for Brexit; critics see it as a power grab while opposition parties are weak. Here, we assess what impact this important change might have on fuel prices over the coming months.
Impact on the pound
In response to the announcement, the value of the pound against the dollar dropped by 0.5%. It then rebounded, closing 2% up against the dollar, its highest level in over six months. In the short term, this will benefit fuel prices at the pump and if the pound continues to strengthen we could see prices fall by up to 5p a litre in the next month.
What the experts think
Broadly speaking, market experts believe the snap general election is good news for the UK economy and for Brexit negotiations, as it will strengthen May’s hand at the table with the EU (assuming she wins).
Morgan Stanley thinks it reduces the risk of a “disorderly Brexit.” The Conservatives will make clear in their manifesto that control of borders, courts and laws are the red lines that can’t be crossed, leading to a World Trade Organization hard exit if the EU fails to agree on these terms.
Deutsche Bank’s George Saravelos called the Prime Minister’s announcement “a game-changer for both the UK’s Brexit negotiations and sterling,” according to the FT.
In effect, the snap election will bolster the economy and the pound. Confidence in the market is up, although the FTSE fell following the news of the election, with companies worrying about tariffs imposed on them when operating outside the single market.
Likely impact on fuel prices
In the next few weeks, we expect fuel prices to fall slightly, as the wholesale price of oil per barrel continues to fluctuate in the mid $50 range. Petrol retailers buying with a stronger pound will enjoy lower costs as a direct result of sterling’s strength.
Most experts think that May will win this general election by a significant majority. The likely impact on fuel prices if that happens is positive.
If May is re-elected with a landslide, we’d expect the pound to rise further. Assuming the price of crude oil stays in the same range, that means prices could drop even more in the summer.
If May wins marginally, and there is a high Remain turnout, we could instead see a rise in fuel prices, as confidence drops about the future of the country when tackling Brexit and the economy.
We can see that Prime Minister Theresa May is trying to act decisively to create more of a mandate to push through the Brexit negotiations, with the full exit likely to be in 2022 due to transitional agreements. In the short term (to June) this looks like it will be good news for fuel prices. What happens when negotiations with the EU get underway in late June is less clear.
Tell us what you think about this snap general election decision. Can you foresee cheaper prices in the coming months or do you think that prices will go up because of this?
Apr 13, 2017
Two schools in London are taking the next step in tackling the growing air pollution crisis by fining parents £130 for driving their children to and from school. Experts believe that tackling the pollution issue at the source, by hitting parents in the wallet, will cut down on those who unnecessarily drive their kids to school. The measure should radically improve road pollution around schools where public transport is easily accessible.
As part of an unprecedented initiative called “School Streets,” Hackney Borough Council will ban parents from picking up and dropping off their children between 8.30-9.15 am and 3.15-4.00 pm.
The ban is set to begin in June and, while it only applies to two schools now, could be expanded across the borough (and the capital) if it proves a real success.
Whilst primarily focusing on reducing the amount of pollution that school children breathe in daily, it is hoped that the ban will also increase children’s activity levels, by encouraging them to walk or cycle to school and to use public transport.
This follows last week’s news that London will be introducing a “toxicity charge” from October, to help prevent the highest-polluting vehicles from using capital’s roads.
The dangers of air pollution are becoming increasingly apparent, igniting a war on air pollution across the UK. While these measures attempt to encourage use of public transport, how realistic is that, when London Underground and train routes are already close to breaking point?
If this was rolled out across all major towns and cities in the UK, what impact would it have on pollution? Is the public transportation infrastructure ready to cope with a massive increase in the number of children using it to go to school? What about the public safety of children if this was made law?
Whilst this attempts to tackle a serious problem, do you think that it is a viable solution? Could it be improved? Please let us know your views in the comments below.
Image credit – Pixabay
Apr 12, 2017
Have you ever unthinkingly thrown a piece of gum or an apple carcass out of the window whilst driving? Well, you may now find yourself facing a £75 charge if you do so.
The government is introducing this measure in an attempt to reduce the amount of litter on and around the nation’s roads. The move is part of the new Government Litter Strategy for England – a national initiative to tackle rubbish in public places.
Seeing discarded rubbish by the side of roads, on pavements and in parks is unpleasant to us all. It also harms wildlife and pollutes the environment.
Waste disposal in the UK has clearly become a problem. The Daily Mail claimed that there were over 900,000 reports of fly-tipping in 2015/2016, with councils spending £50 million a year to tackle the issue. The Woodland Trust called 2016 the worst year ever for fly-tipping.
Cleaning up the mess
Earlier this week, the government announced plans to tackle the issue. Environment Secretary Andrea Leadsom indicated that there were plans to serve convicted fly-tippers with community service orders, with cleaning and picking up rubbish used as a deterrent. This is on top of the £400 fine introduced last year.
The government also wants to scrap the charges that some rubbish disposal facilities apply to those disposing of household and DIY waste. Ms Leadsom has labeled the current charges as, “unfair and unacceptable.” Cutting them out would make using tips and recycling facilities a more attractive option.
Successive government cuts since 2010 have caused an increasing number of cash-strapped councils to charge residents for disposing of their waste. However, it is actually illegal for council-run tips to charge, so if you are asked to pay to use your local one, be sure to appeal.
The problem is exacerbated by criminals pretending to be waste carriers. They pick up residents’ rubbish for a small fee, then dump it illegally somewhere.
The government hopes that the planned changes will slash the demand for these kinds of services, and thereby greatly reduce fly-tipping. Ms Leadsom comments:
“Litter affects us all, harming wildlife, polluting seas, spoiling towns, and giving visitors a poor impression. Our strategy will tackle this by building an anti-litter culture, making it easier for people to dispose of rubbish, and hitting litter louts in the pocket.”
Whilst we at PetrolPrices.com welcome the measures to reduce litter, we are skeptical about how effectively these rules will be enforced. What do you think? Are these measures enough?
IMAGE CREDIT: Pixabay (Public Domain).
Apr 5, 2017
The EU has sent a written warning to the UK government, stating that the UK exceeds acceptable pollution levels in its cities. If the UK does not begin to resolve this soon, the EU may see fit to begin issuing fines. Rather than admit culpability for past policy decisions that led to this situation, in a month’s time the government will announce a series of measures to tackle the crisis. Nearly all of them will penalise drivers of high-polluting cars.
The government is set to announce strict new measures on diesel drivers shortly, including a ‘toxin tax’ (or T-charge) on those driving in up to 35 locations around the UK (10 cities and 25 towns). The tax could be as much as £20 per day for the worst polluted areas.
London leads the way
The Mayor of London, Sadiq Khan, has announced this week that the T-charge for drivers of pre-Euro 4 engine cars in central London will be £10 per day, starting from October. The charges will run alongside the existing congestion charge of £11.50, meaning that drivers of cars classified as “polluting” will pay £21.50 a day to drive around central London. The aim is to improve the city’s air quality by discouraging the owners of high emissions vehicles to drive into central London.
Nor is that all. An ultra low emission zone (ULEZ) will replace the T-charge as of April 2019. At that time, the fee for pre-Euro 4 vehicles will increase to £12.50, meaning that drivers’ total daily fee will reach £24.
If the London Mayor has his way, the ULEZ will expand in 2020, with taxis, buses, HGVs and coaches all incurring charges. Some will be charged up to £100 to drive in the zone under the proposed scheme. Khan believes that this will cut nitrous oxide levels by up to 50% by 2020. ULEZ will be the first ultra low emission zone in the world.
Both initiatives intend to ‘price out’ drivers of high emissions vehicles from central London. As many as 10,000 vehicles are likely to be affected by the T-charge.
Government plan
Environment Secretary Andrea Leadsom will announce the government’s plan to tackle the problem in the next month. It is expected to contain a range of measures to combat urban pollution, including taxes for driving into towns and cities and increased parking charges. The aim is to discourage polluting vehicles from entering cities. Areas such as Birmingham, Southampton and Leeds are on the government hit list.
The measures could even include an enforced ban on private diesel cars and commercial vehicles entering cities during the “peak hours of the day.”
Not long ago, the government proclaimed diesel cars to be a greener and more environmentally friendly option than petrol cars. It encouraged consumers to buy them instead of their petrol equivalents. As such, the new plans are likely to create widespread outrage amongst diesel motorists, who feel betrayed by the government.
The new regulations will likely be enforced via a camera network similar to those already operating in London. The investment needed to create these new urban networks of anti-pollution cameras will run into the millions.
PetrolPrices.com members say ‘no’ to taxes
In an online poll conducted by PetrolPrices.com of 150 members, a massive 92% of respondents said they would refuse to pay the new ‘toxin charges.’ This illustrates the huge challenge that the government and local councils will face.
The government’s long-term plan seems to be to make all new cars and vans ‘zero emissions,’ or preferably electric, by the year 2024. This will bring the UK in line with other leaders in diesel emission-reducing initiatives around the world. Many major cities (including Paris, Madrid, Athens and Mexico City) plan to enforce new regulations that prohibit or discourage the use of diesel and ban diesel vehicles by 2025.
The Dutch government plans to go one step further and prohibit the sale of both petrol and diesel cars by 2025 – it is keen to set a precedent in encouraging the sale of electric cars.
Based on the reaction of PetrolPrices.com users to the toxin tax, it seems the government could face a public backlash at the new T-charge and ULEZ schemes.
It certainly seems extraordinary that the government plans to penalise drivers for polluting cities, without running a comprehensive high polluting vehicle scrappage scheme alongside such plans.
We’d love to hear your views about these new government plans. Let us know in the comments section what you think about the new diesel penalties. Would you pay these charges? Would you scrap your high polluting vehicle for cash if it was offered?
Mar 29, 2017
It’s finally happened; In what Prime Minister Theresa May has described as “an historic moment from which there can be no turning back,” Britain has invoked Article 50 and formally started the “Brexit” process of withdrawing from the European Union.
Unsurprisingly, the media is packed with stories about this monumental moment. At PetrolPrices.com, we’ve been looking at the potential impacts on UK drivers – some of which could prove hugely significant over the coming months and years.
Petrol prices
In the short term, it seems unlikely that this initial stage of Brexit will have any particularly noticeable effect on the price of petrol and diesel.
Save for a small bump in the value of Sterling against the Euro in the immediate wake of the Article 50 letter being delivered to the EU, the currency markets have remained calm. After all, everyone knew this moment was coming. Oil prices also remain solidly around the $50 per barrel mark, where they’ve now hovered for some time.
As negotiations progress, however, things could change rapidly. The UK price of fuel is heavily influenced by the value of the Pound against the US Dollar. Any signs that the Brexit negotiations are going badly (perhaps due to disagreements over the UK’s “exit bill”) could hit Sterling hard, perhaps causing it to fall in value by anything up to another 20%.
That said, if things go more smoothly on this score, and oil prices remain reasonably static, it’s unlikely we’ll see shifts in fuel prices of any more than 10 pence per litre either way in the medium term.
Buying and selling vehicles
The price of vehicles already seems set to rise in the future as a direct effect of Brexit. The fact that many car parts are purchased from elsewhere is already pushing up prices due to how much Sterling has weakened since the referendum.
The flipside of this is that cars being theoretically “worth more” in the UK could mean that residual values strengthen, boosting resale prices.
Another interesting point, raised in a report in The Telegraph, is that Brits may not have quite so many new car models to pick from. This is because of the costs involved in adapting cars for right-hand drive. Coupled with the increasing cost of parts, it seems likely some manufacturers will simply decide not to make certain models for the UK market.
It’s also worthy of note that consumable parts – including tyres, brake pads and filters, could go up in price due to similar currency-related reasons.
Travelling and driving abroad
The precise implications of Brexit for Brits driving to and within Europe will take a while to play out. Until the process is complete, nothing will officially change.
However, once the changes begin they could be significant.
First off, the days of the “booze cruise” to France or elsewhere could well be numbered. Britain will break away from EU customs arrangements in time. This may mean “genuine” duty-free goods from just over the channel, but the quantities of alcohol and tobacco individuals will be permitted to purchase will vastly reduce from where they are now. If the limits match those currently set with countries outside the EU, we may well see limits of four litres of wine and a single carton of cigarettes per person – a vast reduction on what’s allowed now.
It’s also reasonable to expect that customs and border checks will be far more involved and time-consuming than they are now. All-in-all, a quick jaunt over to France to stock up with beer and wine will become far less appealing once Brexit is complete – unless Prime Minister May manages to strike up some kind of bespoke deal for the UK.
Insurance and other legalities
A reduction in the amount of booze we can bring back from Europe may seem rather insignificant compared to other changes that could come to pass, depending on the outcome of Britain’s negotiations with the EU.
While Brits will no doubt be able to continue to travel to mainland Europe, there’s a chance their length of stay could be curtailed if true freedom of movement is lost. Some pundits have even discussed the prospect of Brits needing a visa for travel, but realistically the negotiations would have to go really badly for this to come to pass.
A more likely issue for Brits is the loss of the European Health Insurance Card (EHIC), should Britain end up leaving the European Economic Area (EEA) as well as the EU. Should this happen, UK citizens will need private health insurance to receive medical treatment when travelling in the EU.
Car insurance-wise, it’s unlikely much will change, although an EU law change back in 2o12 outlawed the practice of insurance companies offering cheaper premiums to (statistically safer) female drivers. Should the UK decide not to continue to implement this, women could see their insurance costs fall, at least in theory – but this doesn’t seem especially likely.
How do you feel about the announcement of Brexit? What do you think will be the biggest impacts on UK drivers? Let us know your thoughts in the comments section below.
Mar 29, 2017
Spring is here and the days are finally getting longer. Here at PetrolPrices.com we’re finding that our diaries are looking busier too, with far more upcoming reasons to take to the roads for long journeys.
One problem with taking lots of road-trips is that they can result in cars becoming very messy and cluttered. Even short journeys can tend to produce a build-up of food containers, magazines and discarded children’s’ toys. Meanwhile, those longer trips sometimes involve using up every inch of boot space to squeeze everything in.
That’s why we’ve done some digging around for products that help organise or expand the storage space available in your car. These products can all reduce clutter and make journeys that little bit less stressful.
1. One for extra storage
If setting off on a long journey with the family involves playing a game of boot-based Jenga to fit everything in, you always have the option of adding more storage in the form of a roof box.
Thule’s products are not the cheapest on the market, but they are the most consistently well-reviewed. This small roof box fits onto most roof bars and has a capacity of 320 litres. The maximum weight is 50kg, which is the equivalent of two heavy suitcases.
You load and unload this box from the rear, so it’s easy to work with, and it’s also easy to mount and unmount, so you have the option of using it as a permanent or temporary fixture.
Positives:
- Simple to install and load up.
- Durable.
- Will not fade, thanks to UV protection.
Negatives:
- Relatively pricey – but you get what you pay for.
2. One to sort the boot out
Car boots are not easy to keep tidy, being one big undivided space. This is where boot organisers fit in, allowing you to have separate sections for shopping bags, cleaning products, emergency supplies, and anything else you need to keep handy.
This particular organiser has a plethora of different compartments and straps to help you organise the items in the boot. It’s also foldable and removable – so it’s easy to take it in the supermarket and use it to organise the shopping, and equally simple to remove completely if you need the space for big suitcases or parcels.
Positives:
- Great value.
- Several flexible storage compartments.
- Folds flat.
- Great reviews.
Negatives:
3. One for cyclists
If your car is a reasonable size, it’s generally possible to fit a bike inside for transportation, sometimes subject to removing a wheel and finding the right angles! However, it’s usually a fairly painful endeavour and one likely to leave mud and mess all over the car’s interior.
A bike carrier is the answer, and this Thule model strikes just the right balance between build quality and value.
The rear mounted carrier hold up to two bikes and fits on most vehicles. Only a mounted spare wheel is likely to prevent successful installation.
This carrier is well reviewed and has a range of accessories available too.
Positives:
- Five-year guarantee.
- Compatible with most cars.
Negatives:
- 30kg weight limit may be low for some.
4. An innovative idea
We’re really rather taken with these “catcher caddies” than fall firmly into the “why didn’t I think of that?” category.
The idea is that they fit into the wasted space between the front seats and the centre console of the car. This produces an organised storage area from a space that motorists usually either try to wedge items into or drop items down accidentally!
These caddies come in a twin pack and are particularly well-suited to vehicles where storage options around the front seats are lacking.
Positives:
- A great value accessory.
- Seriously practical.
- Sturdy PU leather.
Negatives:
- May not fit every car – check before buying!
5. One for the parents and grandparents
Parents and grandparents all know that journeys with children can produce a huge amount of clutter. Books, bottles, toys, snacks and iPads often end up strewn over the back seat within minutes.
A seat back organiser is the solution to this problem, and this particular one boasts some great reviews. There are plenty of compartments, including mesh and zipped options, and the all-important see-thorough PVC section for a tablet device.
Most crucially of all? It easily wipes clean.
Positives:
- Great pricing.
- Loads of extra storage space.
Negatives:
- Not ideal for curvy sports seats.
Mar 22, 2017
The winter season can put a lot of strain on both the interior and the exterior of your vehicle – think muddy puddles and dirty feet!
After months of enduring the cold, being rained on, and navigating the dark mornings and evenings, we can finally see spring approaching. Therefore, it’s the perfect time to spruce up your car and get it in shape for the warmer months ahead.
With this in mind, at PetrolPrices.com we’ve pulled together a top five essentials list for spring cleaning the inside and outside of your car. These items will help you get it back into factory fresh condition, kickstarting your spring so you can hit the road in style.
1. One for those on the go
A Bluetooth transmitter is a modern day essential and if your car isn’t already equipped with one, it could be time to look at picking one up. It’s powered by your car’s cigarette lighter socket, and cleverly includes a USB port in the connector to provide charging power to your phone.
This particular variation comes with a plethora of features including hands-free calling mode.
In addition to this, one of the device’s main features is its ability to connect to your phone’s Bluetooth in order to play music from apps such as Spotify and Apple Music. This is particularly useful if you have an older car without such functionality built into the stereo system.
Positives:
- Great sound quality
- Good value for money
- Plenty of features
- Expandable storage
Negatives:
- May cause a distraction for some
2. One to get your wheels shining
Driving around in the great British weather will quickly leave your wheels caked in mud from the countryside, and grime from the cities. If you find your alloys are frequently dirty, then a professional grade wheel cleaner could be the way for you to blast away all the dirt and grime on your wheels.
This product from Wonder Wheels boasts great customer reviews. It’s excellent value for money, with many other comparable products costing more for less of cleaning product. The five litres of cleaner will be sure to last you through the whole spring season and beyond.
It is worth noting that this is a strong formula so it’s advisable to wear gloves during the application of the product.
Positives:
- Auto Express award winner
- Well reviewed on Amazon
- Includes cleaning brush
Negatives:
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3. One to keep your car looking fresh
You never know what life will throw at you as a modern day driver. When you’ve invested in a shiny new car you want to keep it looking in top condition at all times – and this waterless cleaning solution is the perfect product.
What really stand out about this is the ease of use. You simply spray the solution on a micro fibre cloth and you’re good to go. You don’t even need water. This means that you have a lot of flexibility in where and when you can clean your car
Using products like this helps maintain the resale value of your car too, as we mention in our Car Care Tips feature.
Positives:
- Easy to use
- Suitable for all types of body paintwork
- Great value for money
Negatives:
4. One to switch out your interior
If you’re unsatisfied with your car’s tired fabric car seats, then here’s a way to enjoy the benefits of leather – such as easy cleaning – for an affordable price. This set includes everything you need for a five-seat car with two front seat covers, one back seat bench cover, and five covers for headrests. Additionally, the seat covers are compatible with side airbags so safety isn’t compromised.
These are available in a conservative black colour, or in more sporty colour combinations to suit your individual tastes.
Positives:
- Great quality
- Range of colours
Negatives:
- Not truly universal – check for compatibility with your car (our link is for Ford vehicles)
- Not suitable for cars equipped with sports seats
5. One to protect your carpets
Getting mud on your shoes is next to unavoidable (especially for those of us with young children), but that doesn’t have to be an issue if you have good car mats to protect your carpets. These will keep your car looking and good and protect it from damage at the same time.
What’s really great about these particular mats is that they are easy to clean so when the inevitable does happen you can simply give them a wipe off and you’ll be good to go again.
This product from JVL also adjusts to fit any car size.
Positives:
- Slip resistant rear
- Long lasting
- Universal size
Negatives:
Mar 8, 2017
Last month saw the Birmingham NEC play host to the Caravan, Camping and Motorhome Show, where over 350 exhibitors showed off their wares. With over a million caravans and motorhomes in the UK, these events always attract thousands of interested visitors.
Recently, the Caravan Club re-branded after 110 years to become the Caravan and Motorhome Club. The club seems keen to do all it can to make caravanning even more accessible to the modern family, with up-to-date facilities and that all-important WiFi connection.
One consequence of Brexit and the current financial climate (particularly with regard to the value of Sterling) is that some families will find their money won’t stretch as far whilst abroad this year, further increasing the attraction of UK holidays in caravans and motorhomes.
With all of this in mind, we thought it would be a good idea to produce a list of five great caravan and motorhome products to get you prepared for your next trip around the UK.
1. One for the dedicated caravan enthusiast
Anyone experienced in owning a caravan will know that there are plenty of times when you’ll want to move it without towing it with a vehicle. A caravan mover is the answer, and an essential purchase for any regular caravan user.
This caravan mover from Ego is state of the art and has been designed to save as much weight as possible. However, it doesn’t make any compromises when it comes to strength, longevity or simplicity. It’s also better value than many other similar options. Ground clearance is great, giving you flexibility at all the sites you visit.
We’ve collaborated with Autofix on a special discount for this product, you can access it via the links on this page.
Positives:
- Five year parts and labour guarantee
- Easy to use
- Weighs only 23kg
Negatives:
2. Extra space for the family
Those with smaller caravans can soon find things getting a little cramped, especially with the whole family on board. An awning is the obvious answer, but there are vast numbers to choose from.
This Trigano inflatable awning is a great solution for those seeking more space. The product has a raft of great reviews on Amazon and is a quick and easy way to add an extra room to a caravan.
The awning works using a simple air pump system. Compared to many others on the market it is simplicity itself to erect. Setup takes just minutes, meaning you can bypass the stress and get straight into enjoying your holiday as quickly as possible.
Positives:
- Quick to put up
- Lightweight
- Good value for money compared to others on the market
Negatives:
- Not available for all caravan specifications
3. One for true freedom and wild camping!
This portable generator gives you the freedom to go wherever you want on holiday, without being chained to campsite hook-ups!
This generator is a market leader and very well regarded in caravan circles. Practical Caravan, in particular, give it a glowing review.
The generator runs on petrol and benefits from low noise levels and a lack of the fumes that you may associate with a typical generator. Honda claims that this generator will allow you to run a microwave and several other household appliances simultaneously, giving you more than enough to power through a holiday.
Cost is one drawback with this product – it is more expensive than others on the market. However, in terms of generators, it seems the phrase “you get what you pay for” is very relevant.
Positives:
- Lightweight
- Five-year warranty
- High quality
- Market leader
Negatives:
- Requires an annual service
- Pricey
4. Keeping a stock of food
This Russell Hobbs freezer is great value for money and sure to help on hot summer days, or when you wish to carry plenty of supplies. If your motorhome or caravan doesn’t have a freezer of its own, there’s no need to go without. This could be a perfect alternative.
Features include a 32l capacity, the industry average for this type of product. The well-known brand is reassuring in terms of quality and longevity. The freezer has an A+ energy rating that means it won’t use up as much energy as others on the market – something very important if you’re using battery or generator power.
It’s worth noting that this freezer could also be great for extra space at home, and consequently seems like an even more worthwhile investment.
Positives:
- Reputable brand
- Great value for money
Negatives:
5. Time to relax
A sun chair is an essential caravan accessory for the warmer months, but you don’t want something that’s going to take up too much space in the caravan.
As well as being superb value for money, this particular lounger also has an adjustable head pillow feature, making it a lot more comfortable than others we’ve seen. If you’re worried about storage, as mentioned above, then that isn’t an issue here because the product folds up so it’s compact and easy to carry.
This particular product is available in single or double packs, with black and brown colour options both available.
Positives:
- Good quality
- Glowing reviews
- Comfortable
Negatives:
Mar 8, 2017
This week’s 2017 UK budget delivered very little news to grab the headlines, especially for motorists. As we heard on the BBC News straight after the budget, those used to seeing previous Chancellor George Osborne “pull rabbits out of hats” at these events saw “no rabbits” from Philip Hammond on this occasion.
So what news can we report for UK motorists?
Perhaps the biggest news was the distinct lack of news. We were surprised not to see anything announced that would directly affect drivers, particularly diesel drivers. However, there was no fuel duty increase, no official news of a scrappage scheme, and no changes to Vehicle Excise Duty (road tax) beyond those already announced (with the exception of the unsurprising fact that this tax on existing cars will rise with inflation). Anyone interested in the VED changes that take effect from April will find further information in this previous article.
Trouble ahead?
It’s not at all cynical to assume that the government is storing up some of the above changes for the autumn, when the UK will have its first full Autumn Budget, rather than an Autumn Statement, the last of which took place in 2016. It still seems likely that diesel drivers will be hit in some way when this takes place.
A hint that the government hasn’t forgotten about the need to tackle diesel use is tucked away in the detail of the written budget, where it states that the government will be investigating the use of “red diesel” in the coming months. This far cheaper diesel is identical but dyed red, and used by some vehicles working in construction and agricultural industries. This pending investigation suggests there’s a clampdown on the use of this cheaper fuel on the way, especially where these vehicles are used in urban areas.
Whatever happens, the country’s dreadful performance against pollution targets means that something will have to be done soon, so the silence on this issue in the budget should probably be treated more as a reprieve than as a case of “no news is good news.”
Road spending
Spending on the UK’s struggling road network was announced in the budget, confirming some promises made in last year’s Autumn Statement. According to The BBC, this includes a commitment to £90 Million of spending for the north, £230 Million for the Midlands, and £690 Million to be doled out by local councils to “tackle urban congestion.” Totalling just over £1 Billion, these commitments seem something of a drop in the ocean given the traffic levels our roads have to deal with on a daily basis.
Brexit
The one big thing that could change everything is the impact of the impending declaration of Article 50 and the commencement of Britain’s departure from the EU. While some pundits feel that this has been factored into financial forecasts, history has shown that it’s almost impossible to predict how the markets (and the general financial health of the country) will be impacted by political events. However much anyone tries to predict what may happen in the next six months, the only certainty in the current climate is uncertainty.
The next budget in the autumn will take place against a backdrop of major transition. That, coupled with the fact that this budget has been far from revolutionary, truly seems to indicate that the next one will be a big one.
Labour has described this budget as one of “utter complacency.” Do you agree? Share your views in the comments below.
IMAGE CREDIT: Pixabay (Public Domain).
Feb 22, 2017
For several years now, UK drivers have been broadly able to count on supermarkets to provide them with significant price savings on fuel. A succession of price wars, often linked to vouchers and loyalty schemes, have often (but not always) seen supermarkets offer fuel at the lowest prices around.
However, in a surprising development, it seems the supermarkets have decided to edge away from this price battle.
We’ve noticed this phenomenon at PetrolPrices.com over the past few weeks, when familiar searches on our apps have pointed us to brand-name petrol stations instead of the supermarkets we’ve become used to seeing (and using to fill up!)
It’s not only us who’ve noticed. The AA’s own Fuel Price Report has confirmed that the gap between supermarket and name-brand fuel pricing is narrowing significantly, a fact reported on by several news sources including The Daily Mail.
The AA’s report specifically highlights Jet forecourts, which in recent times have started to undercut Sainsbury’s petrol stations in some places.
Have supermarkets abandoned the price war?
This interesting development has caused us to wonder about possible reasons for the apparent strategy change from the supermarkets.
Potential reasons that spring to mind include:
- Supermarkets finding themselves with less flexibility to tweak their prices “on the fly” due to relatively stagnant exchange rates and oil prices.
- A concerted effort from other fuel retailers to narrow the pricing gap.
- A policy change dictated by customer behaviour. Essentially supermarkets often discount petrol to lure customers into their stores for other purchases. However, doing this is less compelling when consumers are economising and paying off Christmas debt in February, than when they’re filling trolleys with seasonal goods.
A report in The Sun suggests something along the lines of the third scenario, saying that the supermarkets seem to have decided to stage their price wars around the items on the supermarket shelves rather than the liquid in the petrol pumps.
What happens next?
Obviously the big hope is that this lull in supermarket activity is merely the calm before the storm of a petrol price war, but there’s not really anything beyond optimism that points to this being the case.
The Sun’s report quotes one retailer saying that fuel sales fell “off a cliff” last month – something not particularly surprising when comparing December with January. However, only time will tell how long people will tighten their belts for.
The one thing that is for certain is that finding cheap fuel is not as straightforward as heading for the nearest supermarket. It’s now quite possible that you’ll save money by heading to an independent forecourt or even one of the “big name” petrol stations instead. Make sure you use our free service before you next fill up.
Have you noticed local garages undercutting the supermarkets in your area? Share your experiences in the comments below.
