Francis Elliott, Valerie Elliott and Robin Pagnamenta
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Ministers are preparing for a fresh confrontation with the road haulage industry as the £5 gallon of petrol became a reality at the pumps yesterday.
Fuel protests returned as hauliers demanded help from oil companies and the Treasury, which is raking in huge surpluses from record petrol prices. The cost of filling an average car could reach £84 next year, one consumer body will say today. Air passengers are also being hit as British Airways announced that it was slapping new fuel surcharges on all tickets from Friday to offset the escalating cost of fuel. Long-haul passengers can expect an extra £30 surcharge.
About 250 lorries caused disruption in Central London, evoking memories of the refinery blockades of September 2000. Further protests are to be staged by hauliers and farmers around the country as campaigners try to keep the issue in the public eye.
A spokesman for Transaction-2007, which organised yesterday’s protest, said: “Any further rise in cost of fuel will be an obvious trigger. We need to keep the issue alive and win support from ordinary motorists who are also being hit by higher fuel bills.”
Huw Thomas, 47, who runs a timber haulage company in Rhayader, Powys, said: “Fuel prices are absolutely ridiculous. It’s going to finish us in a few weeks the way things are going. We have to make our presence felt today. I would certainly be in favour of blockading oil refineries.”
As hauliers demanded immediate financial help, BP and Shell announced combined profits of £7.2 billion in only three months. Soaring prices are also delivering unexpected surpluses for the Government in the form of higher tax revenues from North Sea oil. If prices remain at current levels, the Treasury could receive as much as an extra £2.5 billion.
Vince Cable, the Liberal Democrats’ Treasury spokesman, said that Gordon Brown would be “quietly delighted” as the oil tax revenues fill depleted coffers and urged Alistair Darling to keep the fuel duty rise under review.
Mr Cable, a former chief economist at Shell, said Chakib Khelil, president of Opec, had been right to give warning that the oil price could reach $200 a barrel. “There’s the potential for a major oil shock on top of what we already have today,” Mr Cable said.
Roger King, chief executive of the Road Hauliers Association, called for a windfall tax on the leading oil companies. “Investment in the haulage industry could come from a windfall tax or from the Government’s own profits from extra VAT on fuel. We are under the cosh and hauliers are the most taxed sector of the UK economy.”
He also urged the Chancellor to scrap the 2p rise in fuel duty defered from this month and now planned for October. “We want him to make clear now that the October increase will also be shelved.”
But John Hutton, the Business Secretary, warned those planning disruption that the Government was ready to defeat any attempts to disrupt supply. A spokeswoman said that the Grangemouth dispute — which appeared to be nearing resolution last night after “constructive and meaningful” talks between Ineos, the owner, and the Unite union — had shown that a national emergency plan worked up after the 2000 disputes had worked.
Motorists will be paying as much as £1.50 per litre of petrol next year, a further 37 per cent increase on current prices, according to research out this week. The cost of filling an average tank of petrol is set to soar from £61 to £84 in 2009, according to the figures from USwitch, the consumer group.
People living in the country were urged to step up security on their domestic oil supplies after a spate of thefts at Cornish farms and rural properties.
How to save it
— Accelerate gently and change up as soon as possible
— Use your rev counter: 2,500rpm is ideal speed for changing gear (2,000 rpm for a diesel vehicle)
— Maintain a steady speed when cruising. Repeated accelerating and braking uses more fuel
— When stopping, take your foot off the accelerator as soon as you see a red light in front of you
— Keep tyres at the recommended pressure and your engine well lubricated with oil
Sources: cleanmpg.com; ecodrive.org; hypermiling.com
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I think the sonic boom of a herd of camels backs snapping can be heard: house prices, fuel tax, iraq, immigration, 10p tax level, politicians expenses...still the sound of two jags will probably drown them out...
David Leighton, Selby, England
What tax break does my wife have that when she does the school run in her people carrier all seats in the vehicle are occupied by friends school kids, so in effect she is keeping the other mothers of the road in their cars.When are people going to start seeing what labour is all about hiding behind the green issue just to make the rich richer and poor poorer.All you people dissatisfied with this government use your vote at the general elections and dont be hoodwinked by future promises, when in power all changes.
Robert Small, Stoke on trent,
Clearly as the price of fuel increases the government's VAT revenues increase along with the price. Six months ago petrol was 96.9 per litre and now it's 109.9 - extra VAT of 1.94 pence per litre. And further price rises mean more VAT for the Chancellor. So why does he need more duty?
Chris Oakham, Westbury, Wiltshire
Come on farmers and truckers!!! You have my support for fuel blockades. The price of diesel is discusting and if Darling Brown and Co. Hadn't ridden our economy into the sink we'd still be seeing these prices anyway. Makes me want to vomit.
CHeck out Darling's brows as well!
Luke Faichney, Robin Hood's Bay, England
All these people whining about the government, but the government can't help that oil is running out. Reducing taxes to zero doesn't help you one bit either: prices will just continue to go up, and/or fuel will be rationed. Common sense is to get a smaller car or even better, get rid of it..
Jan, Zürich, Switzerland
what will the government think when nhs workers like myself, living in cornwall can no longer afford to get to work?
when the dreaded waiting lists start rising will they listen then?
nathan hill, truro, uk
Taxes misspent -YES. Poorly thought out - NO. They are carefully planned & they are masked by a false veneer of concern for the environment. What gets me is all these eco warriors that think politicians are actually on their side. What is needed is some good public shows of disgust - french style!
Dave, burnley, lancs
80% of fuel costs are tax, and even if you don't drive you are paying for it because business costs rise which are then passed onto the everyday consumer with higher prices. it is simple economics and staggering that no one gets this.
Alex, London, England
Sir,
I understand that the Oil price is due to traders, but can the market not be duly influenced by OPEC themselves buying and selling their own oil, and therfore forcing the price up. If Opec are happy with 20$ per barrel why does the UK Government not form a new UK Petroleum co and buy it from them direct at $20?
david pink, sittingbourne, kent
I'd be all for planned protests to disrupt fuel supplies. It's a case of protest now and suffer a short sharp shock, or be forever ground down under ever increasing, poorly thought out and misspent taxes
Neil Lowrie, Sheffield, UK
it's fine for all these goverment cronies to keep pushing up the fuel price..........after all they are driven everywhere ay OUR expense..........when are they going to put BIG money into alternative fuels for vehicles and not just take take take!.
What would Cameron and his lot do I wonder/.......
Peter, Birmingham,
It looks as though Gordon Brown & his cronies have completely lost touch with reality given the level of taxation which is applied to fuel. Increases in fuel costs reflect on every part of UK society and are becoming a real problem for rural communities where there is no public transport available
Bryan Anthony, Dundonald, Ayrshire
i will join any fuel protests! If the price to fill up an average car tank does get to £80 then I will have no disposable income at all as all my money (after food mortgage etc) will be spent on getting me to work! Any more increses in fuel etc an i won be able to afford to get to work!
PAW, Portsmouth, UK
Even Driving the most neccessary journeys is still costly. Public transport is not much better in fact it costs me as much to drive my own car to work & back as it does to take the bus & I have to be reliant on when they decided to run them which is never. It's a win win situ for the Gov.
Rebecca, Lancaster,
Surely it's time tax on fuel was 'capped'. Is this government intent on taxing average families into poverty
Mike, Gravesend, England
Fuel blockades have my backing. It's time this country stood up against extortionate taxation
Mike, Gravesend, England
It makes me absolutely sick the amount of tax on a litre of petrol. I would be 100% behind any blockade - because it seems to me that it would be the only way the government would listen! We pay 66p to the government with every litre of fuel already - something has to change!
Dan Greenslade, Doncaster,
Reducing fuel duty is all very well but the tax revenues have to come from somewhere and a reduction there means a substantial increase somewhere else. The government is in a lot of debt and it is getting larger not smaller with their current spending plans.
David Jones, Loughborough, UK
I'm a Brit that's been living in the US for 10+ years. What I read in the British press just blows my mind. Regardless of your political leaning, the extent to which you are being taxed, taxed, taxed and taxed some more is simply staggering. At some point soon, the camel's back must surely break.
Robert, Los Angeles, USA
There is no shortage of oil.The real problem is speculation by hedge funds,further exaggerated by oil companies and governments refusing to reduce their percentage margins as prices increase.and so increase their cash profits.That is why governments are not taking any action .
R G James, Brasschaat, Belgium
Oh and just to put my last comments in context, when I started the job I was paying about 96p a Lt, my local garage is now charging 116.9p per Lt for unleaded. More than a 20p increase in 6 months....
Carl, Bristol,
Bring Back the fuel protests. I changed my job 6 months ago. I got a pay increase, so pay more taxes. I also have to drive to work now (whereas I used to walk). in 6 months my petrol bill has gone up from £30 to £40 a week. I am actually earning less now than I was in my old job.
Thanks Labour.
Carl, Bristol,
In some parts of Europe petrol and diesel is less than 75p per litre. Government could reduce the price of petrol and diesel by reducing the duty on every litre or reducing the VAT we pay on the petrol and on the duty. Duty makes up more than 50p per litre, add VAT and it's 70p per litre in tax.
Patrick Henderson, Coventry,
If you really want to save the planet & reduce fuel consunption get rid of all so called traffic calming/controls that litter our towns & cities. Just sit behind any sort of deisel vehicle as it has to stop & then acelerate away each time its progress is impeeded.
Julie J, Oxford, UK
Changing the black cab to hybrid, would this be a short term benefits? At least, when they are in idle, it will just use the electricity, and the price of a particular brand is cheaper than an on-road price of a black cab. I assume most of the people can see that the cab users are mostly less than 4
Ben, London,
I thought we were supposed to be reducing our carbon output these days. Well, stop whining and get on your bikes, people.
neil, waterford, ireland
I hope it's not just the road hauliers getting involved this time. The private motorist should have something to say on fuel tax levels too.
Mike Poulsen, Reading, Berkshire
This country is getting perilously close to major social upheaval as ridiculous price increases for most basics go through the roof. Makes Brown's 2.5% inflation claim sound delusional. I think he's hit his summer of discontent. The sooner this bunch of socialist bloodsuckers is out the better.
JohnM, Perth, Scotland
The"term oil" or turmoil in the oil/gas industry ..where offshore rates have doubled recently ...the onshore "plant" people are perhaps with the latest pension crisis pushed over the edge .
Will the shortage of new construction vessels ever overtake and replace "outdated" contractors fleet?
a.laing, ABERDEEN, SCOTLAND
The oil co.s are profiteering too. They sell the oil they extract to themselves at prices set by OPEC so they can claim to make no profit at the pumps, then claim it's not thier fault. Why be dictated to by OPEC? The first co. to set a reasonable rate will wipe the floor with the competition!
Ron, Milton Keynes, Bucks
Don't complain about the cost of fuel, just get get over this me, me, me culture and use less of it. Drive only absolutely nescessary journeys and we will all reap the benefits: less pollution, more available petrol and the price will drop (as the rate of duty, tax and total cost will drop).
Frank Sloane, Durham,
So where is the government's long term plan to deal with this energy crisis? For a government that sets targets for everything and has hissy-fits if we so much as put our rubbish in the wrong bin or out on the wrong day, it is strangely silent
Richard, Bexhill, UK
The BBC reported in May '04 that petrol prices had reached 80p a litre. If we assume a rate of inflation of at least 5% (forget ONS figures) that would result in a price near the £1 mark now. Fuel is the means to access work, which generates taxes. Reduce this burden and really help poverty!!
Nick Black, Henley On Thames,
This fuel crisis will be the trigger for a DEPRESSION, when no-one can afford to buy fuel. It will effect every industry in this country. Cant this government see that!! Obviously Brown/Darling are fiddling while the country burns.
louis blanc, Liverpool, UK
I'm for protests to take place again. This Government think they can do what they like and get away with it. Tomorrows election will show they can't. GB and AD, full of 'understanding' yes as they smuggly wring their hands. But every extra penny taken in tax will be wasted like the billions before!
Phil, Rugby, England
If they want us to use less fuel how about removing all the speed humps? They increase fuel consumption considerably and cause damage to car suspension etc. I guess common sense will not prevail where this government is concerned.
Phil, Rugby, England
Ah! love the first advice get into top as soon as possible, it was always the first rule back in the thirties and forties, but what does one do when the speed limit is restricted to 20mph across the whole city of Portsmouth, we cant get out of 2nd therefore we use more petrol?
Gasoholic, Portsmouth, England
I think its about time that the government reduced tax on fuel.Mr Brown makes great claims about reducing the standard rate of income tax to 20p but with all the tax people are now paying on fuel,does the 20p income tax rate mean anything when it costs over £50 to fill-up.
stephen hulton, eure, france