With the signs that fuel taxes will be rising in 2012, many drivers will be wondering how they will cope and keep their costs down in this tough economic climate. Over the last two decades fuel costs have already increased steeply, and it has been revealed that the government is looking to increase fuel duty by 3p a litre from next August.
It appears as if the back end of next year will have a heavy impact on people’s finances, with university costs already set to rise to the £9,000 level and this will be added to by an increase in fuel costs.
However, FairFuel UK have put together an e-petition which has gone on to attract over 110,000 signatures. This has forced MPs to hold a parliamentary debate on the extortionate price of petrol and diesel. They have warned that the rise in fuel prices will strangle the disposable income that many have and will stunt the UK’s economic growth chances.
As such ministers have been urged by MPs to scrap the planned increase in tax in 2012 and 2013. The problem has been that the motion has passed without a vote, and this means that it is not binding in the eyes of the government.
This means that it is more than likely that the Chancellor of the Exchequer George Osborne will move forward with some if not all of the duty increase in August, this will be against the strong public feeling on the matter.
However, it would not be fair to accuse the Chancellor of anything until something has been done, after all he did reduce fuel duty by 1p in his Budget in March this year and he also put a stop to the ‘fuel-duty escalator’ which had been introduced by the Labour party when they were in power.
Compare pump prices
Looking back to 1991, the price of petrol and diesel has increased three-fold during the intervening years, and it is these fuel taxes which bring record sums of money to the Treasury. The reason for this is that, the majority of fuel prices are made up of these taxes.
As such to keep the costs down, there are four things which can be done. Firstly, compare pump prices, these vary do it is handy to know where is the cheapest pump. Secondly try and get as many supermarket coupons as possible to reduce the forecourt prices.
Thirdly, use loyalty cards such as Tesco’s Clubcard or Sainsbury’s Nectar card to get points to use at a later date. Lastly, pay with a cashback card which will provide a rebate of some amount.