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Fear and Loathing of Fuel Prices

Posted: 15/11/11 11:41 GMT

If you watch or listen to any of today's coverage of the backbench debate on fuel prices, you may be forgiven for thinking that the likely outcomes of the vote are purely political ones.

Certainly, there are a number of imponderables for the government: will they or won't they debate the more forceful e-petition language? Will they or won't they employ the whips? And will this be another EU referendum-style 'difficult' moment for Cameron and his Cabinet as they are accused of being out of step with their party?

All of which gets the Westminster village very hot under the collar and brings a worthwhile debate out into the open. But behind the headlines and political intrigue there are wider issues at stake.

The price of fuel, like tax in general, is a no-win topic for governments. Environmental issues, clogged roads and the scarcity of oil give Whitehall a sellable reason for making the car more difficult to afford. But the car is now seen as something equivalent to a human right. And when the cost of public transport in Britain is rising at about the same rate as the increase in the number of car-owners in places like China and India, it becomes much harder for successive administrations to justify hiking up fuel duty.

Later today, when backbench MPs fighting for their hard-pressed constituents go toe-to-toe with greenies and deficit-hawks over the price of fuel, it is likely that the car will be pilloried, and anecdotal evidence of parents driving half-a-mile to take their kids to school will be raised as evidence that car-use has gone too far in this country.

However, if not a human right, in the countryside owning a car is something akin to a human necessity. Paying for fuel alone can absorb over a fifth of the income of a poor rural household, and with countryside communities having to travel up to 43% more than urban areas to access essential services, rural people are having to make some very difficult choices when it comes to what they spend their money on.

Countryside Alliance research in mid-March found that it cost a rural person making an average journey into work £1.16 more every week in petrol than it did at the beginning of the year. Fuel prices at the forecourt have continued to rise and in the week beginning 7 November, people in rural areas had to pay £1.34 more every week in petrol than they did at the beginning of the year.

Shockingly, since 1st January 2011, the cost of the weekly commute for a rural worker has increased by just over 7%.

This unprecedented rise has undoubtedly placed a disproportionate burden on rural people, who also suffer from having access to fewer transport alternatives. The Transport Select Committee's Bus services after Spending Review report, published in August 2011, noted that changes to funding had most affected rural bus services and were damaging the ability of the old, young and disabled to participate in employment, education or voluntary work and to access vital services such as healthcare and retail facilities.

Finally, as research from the TaxPayers' Alliance released last week demonstrated, countryside areas also suffer most from excessive fuel taxes - which amount to around £64 per person in urban areas like Camden, whereas in rural areas like Maldon they were a massive £566 per person.

For these reasons the Countryside Alliance is supporting FairFuelUK and Robert Halfon in their current campaign, and I urge you to sign their e-petition to help keep the momentum going. Like them, we would like to see the 4 pence inflation-linked fuel duty rise announced in the March 2011 Budget scrapped, and the creation of a price stabilisation mechanism that accounts for fluctuations in the pump price.

However hot a potato the issue of fuel duty becomes, for the sake of the rural economy (among many others), today's debate must not be the end of the discussion.

 

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If you watch or listen to any of today's coverage of the backbench debate on fuel prices, you may be forgiven for thinking that the likely outcomes of the vote are purely political ones. Certainly, ...
If you watch or listen to any of today's coverage of the backbench debate on fuel prices, you may be forgiven for thinking that the likely outcomes of the vote are purely political ones. Certainly, ...
 
 
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01:42 PM on 11/16/2011
I think in view of our situation Mr Osborne ought to ask the new government in Libya to show their gratitude now that their oil industry is restarted.After all,If billions of pounds (of taxpayers money)had not been wasted destroying their country there might have been something left for us.The time has come for the government to realize we cannot afford the billions of pounds given away in foreign aid and fighting America's wars.Sadly we are no longer Great Britain
11:12 PM on 11/15/2011
The Oil companies gouge the public and the Politicians stand by and do nothing. The high cost of fuel dampening the economy just at a time when the reverse is needed. But the Oil companies don't care, they have a cartel, and can thumb their noses at the rest of us.
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Glowbeanie
02:52 AM on 11/16/2011
Sell cars at the percentage of what a person's wealth is estimated. The richer you are, the more you pay to put it on the road and so on. If you're a commercial business, you pay taxes to do research for other alternatives to non- fossil fuels.
08:25 PM on 11/15/2011
Once again the BBC speak as if the Motorist is a breed apart from the rest of society.
High Fuel costs effect every item that needs to move.
If the Government wants to stimulate the economy then surely lower fuel costs is the way to go.
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Glowbeanie
02:53 AM on 11/16/2011
Very true...especially for non-luxury items.
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FearlessFreep
A radical leftist with a JS Woodsworth avatar.
07:14 PM on 11/15/2011
Still think Global Warming is a hoax?
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Glowbeanie
02:54 AM on 11/16/2011
Too bad you'll be dead by the time it takes severe affect on earth...but I hell will be just as hot too.
05:30 PM on 11/15/2011
Where are the fuel protesters ? 10 years ago fuel was 83p a litre.,.. or were they politically motivated then?
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Glowbeanie
02:56 AM on 11/16/2011
We were all having a Global party...it's pay up time now, for the masses.
03:30 PM on 11/15/2011
Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America is a 2010 book by the political journalist Matt Taibbi about the events that led to the financial crisis of 2008.

It argues that the crisis was not an accident of the free market but the result of a complex and on-going politico-financial process taking place in the United States whereby wealth and power is transferred to a super-rich "grifter class" that holds a grip on the political process. The book has been described as a "necessary ... corrective" of the assertion that bubbles are inevitable in the market system[1], and contests the notion that the greed of the American consumer was a primary cause of the problem.[2]

Taibbi maintains that “all of us, conservatives and progressives, are being bled dry by a tiny oligarchy of extremely clever criminals and their castrato henchmen in government.”[3]
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Glowbeanie
02:58 AM on 11/16/2011
The only greed is with the 1% that want to go on getting bloated by the work the slaves of labor are giving to them...on day that cow will be bloated enough to kill and feast on by the same masses!!
03:29 PM on 11/15/2011
'
lastpost
see biography
12:52 PM on 11/15/2011
"sign their e-petition"
Or post a prayer in the Wailing Wall. Hummm… I wonder which of those is least likely to produce a discernible effect.
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Glowbeanie
02:59 AM on 11/16/2011
Praying it away, seems to make money for many individuals.
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Mickey Mouse 1
There are no lies or deceit on a chess board.
12:12 PM on 11/15/2011
The biggest proportion of fuel prices is down to government taxation. Gordon Brown started the ball rolling and George Osborne is carrying on the movement. As usual, the motorist is getting persecuted by the politicians. So what's new?
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Glowbeanie
03:01 AM on 11/16/2011
Maybe there's solutions that are as plain as the tanks on the automobiles of the government and the rich?
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Mickey Mouse 1
There are no lies or deceit on a chess board.
10:45 AM on 11/16/2011
Most tanks on cars are hidden from view, like the politicians would like their taxes to be. Around 60% of the pump price is down to government tax.