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Are petrol prices unfair?
With oil prices soaring and borrowing costs increasing, motoring groups say drivers and petrol retailers are under too much pressure, while others reckon the UK's car culture needs to change.
Brendan McLoughlin, co-founder, PetrolPrices.com
Oil prices have been rising for the last two years, so motorists have already been paying more for petrol, which the Government makes additional VAT on. With an extra 2p proposed for next April, fuel duty is above inflation (as measured by the consumer price index), but this doesn't account for the extra VAT or factor in rising oil prices. It puts more pressure on motorists' finances at a time when people are being hit by higher interest rates, while higher petrol prices have a knock-on effect on food and other costs. This time last year it might not have had the same effect, but we're at a bad point in the fuel prices cycle and it's the last thing motorists need at the moment.
The money the extra duty raises goes into a central pot and is allocated from there, which is what income tax is supposed to be for. But why are motorists bearing the brunt of things everyone should pay for? They are being hit because politicians don't have the guts to increase income tax.
If the revenue raised was diverted to renewable alternatives, such as electric cars and better public transport, motorists would at least see some benefit from it. With oil running out and getting more expensive, we've got to look at the alternatives. We need to invest in public transport, but people like their cars, so it's time to invest in renewable alternatives, as they do in the US.
Jason Torrance, campaigns director, Campaign for Better Transport
The reality is that the cost of motoring has gone down in real terms since 1997, while the cost of public transport has increased. Tax, as a percentage of the fuel price, has fallen consistently since 2000, with this year's above-inflation increase in fuel costs being the first in seven years. The tax on petrol in the UK is in line with the rest of Europe and it's only fair that motoring pays its full cost.
We must remember that motoring is just one form of transport, but many places are suffering huge problems with congestion. In the last 10 years we've seen a 16% rise in the traffic on our roads, and a fall in the cost of motoring at the same time. We need alternatives to the car and better travel options for individuals, especially those without cars, so we've got to have extra investment in public transport and the infrastructure for cycling and walking so that people are given realistic travel choices.
If the cost of motoring continues to decrease it will cement the car-addiction culture even more. We would like to see the tax on petrol being ring-fenced for improvement in public transport infrastructure. This has happened in London, where the funds raised by congestion charging have been ring-fenced for improvements in the capital's public transport and have succeeded in improving it.
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