Petrol Prices Set To Rise

Higher fuel costs could mean higher lesson costs . . .

Average petrol prices are expected to reach more than £1.12 per litre next month as suppliers pass on the costs of global oil price rises

The AA have published that the cost of filling a 50-litre petrol tank yesterday was £54.44, up £7.82 on a year ago for the same vehicle
Diesel, which was £1.19p yesterday, could rise to £1.23p soon

The Road Haulage Association says that the industry desperately needs stability and a check on costs

Jack Semple, head of policy, said

“Fuel is accounting for 40 per cent of companies’ operating costs and fundamentally sound businesses face going bust”

At present, fuel duty makes up more than two thirds of the total cost of petrol, and business and private motorists pay the same

The only concession for some companies is that they can claim back the 17.5 per cent VAT charge

The average driving instructor doesn't pay VAT anyway, because their earnings are nowhere near enough. So for the majority of ADI's, higher fuel prices mean lower earnings for them or higher lesson costs for their pupils

David Frost, of the British Chambers of Commerce, said

“Every day the price of oil hits a record high, increasing costs for any business dependent on vehicles. The Government must recognise this and at the very least announce it will not be going ahead with the 2p fuel duty rise in October"

“Just repealing that, however, is unlikely to be enough to ease the damage being done to the competitiveness of UK firms. If the price continues to soar then the Government should look at reducing fuel taxes”

The rise in car tax announced in the Budget as a way of cutting carbon emissions will do little to reduce environmental damage, according to figures obtained by the Conservative Party

While the changes to vehicle excise duty will double the revenue collected from motorists to £4 billion, the figures show that CO2 emissions from motoring are expected to drop by less than 1 per cent by 2010