The recent move by the Chancellor, George Osborne, to postpone a planned rise in fuel duty has been greeted with relief by UK drivers. Duty was due to rise by 3p in September.
While the news has been generally welcomed, there is a feeling among motoring groups that prices have already risen far too much. Even since the Chancellor last froze duty, in March 2011, fuel has gone up by 5 pence a litre.
The spokesman for motoring group FairFuelUK, Quentin Wilson, commented, “It is a sign that the Government is listening, but there will be widespread disappointment that the cancellation of this duty rise gives them no immediate relief from climbing fuel prices.”
Wilson also argued the point that the rising cost of fuel was having a negative effect on economic growth.
Some surveys suggest that 76% of households are cutting back on journeys, household expenditure, or both, which backs up the idea the high petrol and diesel prices are strangling off economic growth.
As a litre of petrol costs on average 138.42p, and a litre of diesel 145.24p, many motorists are likely to greet the news with a sense of relief, rather than happiness. Petrol, like insurance, is an essential purchase in order to run a car and therefore, many feel powerless in the face of petrol companies and the government. Despite many motorists taking care to choose fuel efficient cars and to select affordable, comprehensive breakdown cover, the cost of motoring remains high for many.
Classic car owners
Owners of classic cars got some extra relief from Mr Osborne in the budget, since the cut off for vehicle excise duty has been shifted from 1st January 1973, to 1st January 1974. At present they must pay tax on any car registered from 1973 onwards.
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