Friday, 2 March 2012

Cost of motoring

Friends of the Earth have issued a reaction to calls to cut fuel prices that will not resonate immediately with people who rely on their cars for every day use: "Fuel duty cuts are not the solution - with oil prices hikes set to continue we need a fresh approach to give us a transport system we can all afford."

With the overall global economy steadily growing and the reflection of this in oil prices leading to the current $124 per barrel after its collapse in 2009 (see the price of fuel at the pump is unlikely to be affected in the long term by cuts to fuel duty.
Fuel duty reduction would simply reduce government revenue reducing their ability to improve public transport even further (assuming there was any political will to do this in the first place). Campaigners such as Peter Caroll are short sighted in their aims with the Fair Fuel campaign. Global oil prices are going to remain high over the long term and all he might succeed in doing is damaging any hope of affordable transport in the future.

So FoE are right to call for a fresh look at transport and it is a message that we need to continue to sell to the public.

1 comment:

Steve said...

You clearly have no problems affording to get around. Plenty of people need a reduction in fuel just to help them keep their heads above water. Long-term investment in public transport won't help anyone this year, so while that's needed, a reduction in fuel costs now, is also needed by those who are struggling to keep going.