COUNTRYSIDE ALLIANCE

Motorists are once again feeling the pinch at the petrol pumps because of the record fuel prices at the start of 2011. Some petrol stations are charging a whopping £1.30 per litre of petrol. This is because there has been a double whammy of increased fuel duty and VAT. 

The impact of rocketing fuel prices will be more severe on rural communities. This is mainly because rural areas are not well served by public transport networks and therefore families and individuals are almost totally reliant on their cars. Essential every day activities like going to work, taking kids to school, or getting to the shop would be virtually impossible without personal transportation.

The record price of petrol has prompted the government to re-think the “fuel price stabiliser”. Tax is a very large part of the price of fuel and constitutes over 60% of the total cost. The fuel price stabiliser will essentially reduce taxes if the price of oil rose sharply, however, fuel duties would rise if the cost of petrol and diesel fell.

The most pressing issue in initiating a fuel price stabiliser is establishing what a fair price for fuel is so that any fluctuations in the price of oil can be dealt with accordingly with changes in taxes. Maintaining the current price of £1.30 per litre of petrol would be devastating to rural people whose only method of transportation is their car.

If the government does introduce the fuel price stabiliser, it is important that the price does not cripple those whose car is not a luxury item, but an essential requirement in daily living.