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Non-Green Motorists To Be Hit by Tripple Whammy of Fuel Duty Increase, VAT Increase and High Petrol Prices

Despite petrol prices already being at a record high of 119.1p per litre, the added tax and fuel duties will add another 3.5p per litre, meaning drivers will be spending almost £6 more per tank
Finance - 4 January 2011   Download IconContent available for download:  
Audio | Interview with Duncan Movassaghi| Login to Download

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On January 4th, the VAT will increase to 20%. Despite petrol prices already being at a record high of 119.1p per litre, the added tax and fuel duties will add another 3.5p per litre, meaning drivers will be spending an average of almost £6 more to fill a tank than last January.

Because of the fuel cost increase, 57% of drivers are having to cut back on journeys and 8% of car owners have given up driving altogether, looking instead to public transport. Yet rail fare increases by 6.2% are coming in to force this month and public transport users have had to face heavily disrupted services over the last few months due to snow and strikes.

Fuel costs to the individual also have a heavy cost to the environment. With more than 29 million cars on the roads, the road transport sector produces more than a quarter of the UK’s total CO2 emissions. Almost 55% of this comes from passenger cars.

. Introduction:

With fuel prices at an all time high set to rise even higher today with the VAT increase, 57% of drivers are looking to cut back on journeys to save money. With the road transport sector producing more than a quarter of the UK’s total CO2 emissions, this could be a strong step towards helping the environment. But what are drivers’ alternatives? With public transport succumbing to snow and strikes and also facing a heavy price hike, drivers are left with very few options. And with finding ways to reduce travel costs a struggle, looking after the environment is likely to be far from a drivers mind.

So how can drivers avoid increased travel costs whilst also considering the environment?

Joining us in the studio to discuss this further is car expert, Duncan Movassaghi, Head of Operations from Skoda UK.

. Suggested Questions:

How does the situation in our area compare the rest of the UK?

What does this increase in fuel costs mean for drivers?

What is the environmental impact of fuel consumption through driving?

Is public transport a viable alternative to avoid the rising costs of fuel and lessen your environmental impact?

Can drivers save money whilst also lessening their impact on the environment?

What options are available for those looking to drive with more fuel efficiency?

Where can we find out more information?