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Fuel Prices: Traffic Decline Blamed On Cost Of Petrol

Petrol

Huffington Post UK   Dina Rickman First Posted: 16/12/11 10:56 Updated: 16/12/11 10:56

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The number of cars on the road has suffered its steepest decline since records began, with many blaming the increasing cost of petrol.

Traffic volumes have fallen for three consecutive years - with a 1.6% decline in 2010, official statistics show.

And as the money raised from fuel tax in 2010/11 reached £27.3bn, many have blamed the cost of motoring for the decline.

Peter Carroll, of the campaign group Fair Fuel UK told HuffPost the government was "literally driving us back into rescession".

"The price of fuel remains a stranglehold on the whole economy. It is literally driving us back into recession and the government is missing a massive opportunity to stimulate growth and reduce inflation, that could be achieved in a cut of fuel duty," he said.

Although George Osborne shelved a planned increase in fuel duty for this January, he has been criticised for not going far enough.

Conservative MP Robert Halfon said fuel prices were "crushing businesses and families".

"We need to go further in cutting petrol tax, and we need to put further pressure on oil companies to reduce prices at the pumps," he told the Daily Mail.


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The number of cars on the road has suffered its steepest decline since records began, with many blaming the increasing cost of petrol. Traffic volumes have fallen for three consecutive years - with...
The number of cars on the road has suffered its steepest decline since records began, with many blaming the increasing cost of petrol. Traffic volumes have fallen for three consecutive years - with...
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oobuc5
12 Fans
19:02 on 24/12/2011
Just how many people use LPG and how long before the tax is increased to level of petrol /diesel ?
do you remember when the government told us ,you need CFL light bulbs and they are cheap ,well they were ,and then the government pulled the rug from under and now they range from £2 to £10 .each ,same as solar panels /solar farms / LPG road tax ,they are pulling the green grants from everything !
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oobuc5
12 Fans
18:53 on 24/12/2011
dear government do you remember 2005 ,of course you do that was when we reached peak oil
that was when you decided not to tell us ,well as it runs out we know that you will be making as much money as you can out of it .

and then there is the Falkland isles with that oil /gas field just down the road from there ,why is it we get the feeling that if the gas / oil was not there ,no one would be sent ?
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Kenz300
2491 Fans
21:00 on 16/12/2011
Bring on the electric, flex-fuel, hybrid, CNG, LNG and hydrogen fueled vehicles. It is time to end the oil monopoly on transportation fuel. Capitalism only works when there is competition. Monopolies always mean higher prices for consumers.
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tistruth
14 Fans
20:33 on 16/12/2011
Fiddling while Rome (UK in this case), burns. High fuel prices are crippling the motorist who is now using less fuel and therefore the Chancellor is also suffering. Something illogical here? Lower fuel costs means more money spent on commercial items and should reduce food costs in the shop. It's not happening. Something illogical here too? Why the Lemmings over the cliff mentality from the govt? Do the conspiracy theories have a thread of truth? Something is wrong with the policies and philosophies exercised by the govt. Why can't they reduce fuel tax and impose a price freeze so as to stop oil companies adding extra profits to their coffers. What else can the govt do to stop other adverse effects and the oil speculators and the damning effect they have on the economy? It is time for brave action. Have they got what it takes? As an aside, the first water fueled car was patented in the USA in 1935. I wonder whatever happened to that?
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jmmcmkn
222 Fans
20:31 on 16/12/2011
Either Cameron blunders on with his Eco Taxes and rip off Britain or he stops nancying around and throws the whole lot out with the sole purpose of getting us out of recession it's time posh boy learnt the value of money and realised the complete mess this countries finances are in and understood he is going to have to put everything into getting us out of recession. No more distractions, just do it somehow I doubt if he is man enough and rather then act he would rather play handbags with europe.
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ashootist
28 Fans
17:52 on 16/12/2011
you greedy buggers in parliament are going to have to give up as you are turning the middle class into paupers and the lower class into destitution....... I have no intention of paying tax so you can give it to some nuggit in europe, if you want to buy your way to heaven do it at your own expense..

people need fuel to exist it is not a luxury but a necessity
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Mickey Mouse 1
There are no lies or deceit on a chess board.
180 Fans
17:23 on 16/12/2011
The motorist has been persecuted by politicians for years and years, they see us as wallets on wheels to be used to fund their latest pet projects. The money taken from the motoristis not used to improve the roads, or to fill in potholes. It is used to finance drug addicts, foreign aid, Europe or whatever the politicians pet projects happen to be at the time.
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Sickofpoliticians2
247 Fans
15:24 on 16/12/2011
I have both a motorcycle and a car, the car a 4x4, a gas guzzler which has probably done 3000 miles in the last year mainly due to necessity, I'd have scrapped it if not for medical needs of my family, it means if we have to go to hospital I can get us there any weather otherwise it would be gone directly due to being ripped off on fuel, we don't shop in it or take any family member anywhere for fun, we don't do fun together at all. The bike is solely for pleasure I've clocked 14000 miles in the last year, it does 50 to the gallon, can attain speeds of 175 mph and is the best way to get around our busy cities or countryside, they're not for everyone, muppets get killed on them but if it came to the crunch between the pair I know which one would be in the crusher, purely based on fuel costs.
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Tel4b
13 Fans
14:35 on 16/12/2011
Maybe we should all start car share schemes. I've got two on my drive that hardly ever move - and then only one at a time. My son has two on his and my daughter two on hers. Six lots of insurance. Six lots of road tax. Think how cheap it would be if we had say three amongst us. I'm sure we're not the only family like this. If the government insists on treating us like mugs, we should play them at the same game. Take a mate to work. You could probably use the bus lane
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rabidrightwatch
Green lefty & active environmentalist
3026 Fans
15:55 on 16/12/2011
...in your post, you've highlighted one of the main problems - a lot of people simply own too many vehicles..

I've been banging on about car-share schemes for years, but to no avail... I'm now of the opinion that unless fuel becomes significantly more expensive, people will simply ignore car-share, but of course continue to moan about the price of fuel.
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danielc01
43 Fans
13:06 on 16/12/2011
What difference would it make if they cut fuel duty??
Cost of oil rises and falls every other day, with a massive drop of nearly 50p a barrel earlier in the year, and we didnt see much of a drop in prices when that happened.
As if the fuel duty fell, it would just put more money into the pockets of the fuel companies, and id would sooner see it going towards the cost of running our country, rather than line the pockets of a billionaire CEO.
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Haver
4 Fans
14:14 on 16/12/2011
How do you come to the conclusion that cutting government tax is going to put more money into the pockets of fuel companies?

The government gets 80% of every pound spent at the garage forecourt. Cutting the government's take to 70% means the government gets 10% less while the fuel companies will get the same as they have now.
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danielc01
43 Fans
14:20 on 16/12/2011
DId you read my post fully?
If they cut the fuel duty, it doesnt mean the companies will cut the costs.
They wll just leave the prices as they are, as they know we will pay them, therefore making more money.
And secondly, the government doesnt get 80% of every pound, it gets around 75-80 pence of every litre, Which depending where you live, for diesel is between 135.9-144.9 pence a litre.
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rabidrightwatch
Green lefty & active environmentalist
3026 Fans
16:01 on 16/12/2011
the average profit made by an oil company is 4-5p/litre at the refinery gate, and the filling station lessee (a self-employed person; practically none belong to oil companies any more) add as further 4p/litre to run the station and make a living.

Reducing fuel duty will not put more money into the pockets of oil companies - competition is extremely fierce in road fuel sales, and customers will go where it's most affordable.
Reducing fuel duty will only reduce one consumer tax, but which one are you volunteering to take up the slack - hospitals, schools, care for the elderly..?? the money has to come from somewhere..
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danielc01
43 Fans
16:32 on 16/12/2011
Most companies own everything from the drilling to the pump, and make a profit from every process.
And by reducing the fuel duty, wont force the fuel price down, as the companies dont have to lower it. They can then increase there profits.
And if fuel duty was lowered you would probably find people would travel around more and therefore buy more fuel, and therefore the loss in fuel duty would be made up by people buying more litres.
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eric14
1213 Fans
 
11:52 on 16/12/2011
I have known many people who ''go out for a drive'' for no particular reason. In London folk go out and drive around in the late evening just because they can - no business traffic.

I now live in a neighbourhood where people drive short walking distances to local shops.

Please keep in mind that recession will reduce driving for sure - but that much of that driving should be cut because it is frivolous.
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carneliancrystal
Do I believe all the propaganda of course I do
139 Fans
14:40 on 16/12/2011
What has that got to do with the price of chips in China, if these people go out driving whenever they must be able to afford it frivolous or not does it affect you? Cannot see the point of your post other than are you jealous maybe because you cannot?
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eric14
1213 Fans
 
17:34 on 16/12/2011
Seek help.
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