Rising petrol prices are yet another mounting expense at a time when people’s utility and grocery bills are soaring. So it’s perhaps no surprise that many of us are looking again at how we use our cars.
According to research by Confused.com. 40 percent of British drivers are consciously trying to drive less in order to save on fuel.
However, this won’t be an option for many, particularly those who rely on their car for work, and according to the comparison site, this has led to drivers looking for ways to make their tanks last longer, such as removing excess weight from their vehicle, making sure tyres are properly inflated and going easy on the accelerator.
Alex Kindred, car insurance expert at Confused.com, said: “It’s clear to see that rising costs are having an impact on drivers.
“Making some simple changes to the way you drive can reduce the amount of fuel you use and therefore the number of times you need to top up.”
However, there is only so much that people can do to mitigate the impact of rising prices.
The average cost of filling a 55-litre family petrol car recently reached £100.27, while the cost of filling up a diesel car rose to £103.43.
The RAC described this as “bad news for everybody”, as it means “there’s almost certainly going to be upward inflationary pressure”.
Simon Williams, fuel spokesperson at the RAC, said: “Households up and down the country may never have expected to see the cost of filling an average-sized family car reach three figures.”
“With RAC research showing as many as eight in ten depend on their cars, many must be wondering if any further financial support from the government will be forthcoming.”
So far, the government has sought to support motorists by announcing a temporary 5p reduction in fuel duty. However, there have been numerous complaints that many petrol stations are failing to pass on this reduction to customers.
According to Sunday Telegraph, the Department for Transport is exploring the option of naming and shaming those petrol stations that fail to pass on the fuel duty reduction.
“Officials are considering mechanisms available to expose those companies that aren’t passing on tax benefits to consumers,” a Downing Street source said.
The i, meanwhile, has quoted a Downing Street source who says the Prime Minister is keen to implement a further cut in fuel duty. However, the insider said that while Boris Johnson “definitely wants to cut taxes”, they have to be introduced at the right time to avoid driving inflation.
That suggests that any further relief from the government might not come until the Chancellor announces his Budget in the autumn.
But could this be too late, as the pressure on the government to act swiftly is growing each day?
Simon Williams of the RAC, for example, said that March’s 5p fuel duty cut, billed by ministers as the biggest one ever, “now looks paltry”, as wholesale petrol costs have gone up by five times that amount since it was announced.
“A further duty cut or a temporary reduction in VAT would go a long way towards helping drivers, especially those on lower incomes who have no choice other than to drive,” he said.
The RAC has also pointed out that the government is benefitting from high fuel prices as it takes about 30p in VAT from every litre sold, compared with just 25p before Russia’s invasion of Ukraine.
“On top of this, the government is still collecting 53p fuel duty from every litre,” Mr Williams said.
Should the government act to support drivers now or would hasty action make the inflation crisis worse? Or should the onus be on us to change our driving habits so we can absorb rising fuel prices at a time when prices are up across the board?
If you’re worried about how rising inflation and commodity prices are impacting your financial planning, feel free to get in touch, and we’ll be happy to offer advice and support.
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