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Petrol sales fall 15 per cent as drivers cut down on journeys

Petrol consumption in the UK has dropped 15 per cent since the global economy fell into recession.

According to research by the AA, petrol sales in the first six months of 2011 were 1.7bn less than the same period of 2008.

petrol pumpThe reduction in sales is thought to be driven by the record fuel prices, as drivers cut down on non-essential journeys and took to other modes of transport such as walking and cycling for shorter journeys.

A fall in petrol prices is also influenced by the rising fuel economy of the average UK car over the last three years as manufacturers focus on eeking out more miles to the gallon from  their latest car models.

Both private car users and businesses have cut down on journeys in a bid to cut fuel costs, the organisation reports. 

The fall in sales equates to a reduction of 40,000 delivery rounds of fully-laden petrol tankers, the BBC reports.

Although the fall in sales means less emissions and cleaner air, another effect of the fall is that the Treasury lost out on nearly £1bn in fuel duty between January and June this year.

A four pence increase in fuel duty is planned for 2012.

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Faye Sunderland, October 5, 2011
Filed under: Green credentials

2 comments

Alex Kovnat

Reduced tax revenue caused by people not buying as many gallons of motor fuels?

We should be reminded that in comparing the economics of passenger and cargo transportation via buses and trucks as opposed to passenger and freight railroad trains, the former make use of highways whose cost of maintenance is provided by our fuel tax dollars.

So given there are fewer dollars available for road maintenance caused by reduced auto traffic, we need to ask: Is wear and tear on roads also decreasing? If so, then we don’t need as much money for road maintenance. But if big buses and trucks are causing a disproportionate percentage of road wear and tear, perhaps we need to tax their operation a little more to reflect this.

From what I understand, railroads have always had to pay their own track and right-of-way maintenance.

October 5, 2011

Julian

The situation in the UK regarding fuel costs is insane. The idea of another four pence going on top is more madness. It’s amazing how the government don’t realise that a huge factor that is affecting our economy is the cost of fuel. While it remains far too high the effect is to kill off growth and consumer spending.

Overall tax revenues will continue to drop as the economy dies a slow and painful death. One way to breath life back into it would be to slash fuel prices to a correct level for our current economic conditions (around 80 pence a litre)

October 6, 2011

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