Fuel sales plummet

A basic economics course will teach you about price elasticity of demand. Although the roads don't seem any quieter down south this sort of news should not come as a surprise. Ok governments can't do much about the price of oil however the duty and VAT they add on they can. Knowing how much a 1p price movement makes in terms of litres sold should allow them to work out the optimal amount of duty and VAT to add on to keep the number of litres sold the same statistically speaking. The oil futures market could always be used to predict the underlying oil prices over the next 6 - 12 months meaning that the duty and VAT could be changed in each budget announcement.

By ShouldHaveBetterThingsToDo on 5 October, 2011, 6:36pm

Use less

OR on the positive side, our kids and grand kids might have a few drops left for them to use!!

By SprightlyBob on 6 October, 2011, 7:21am

More fuel efficient cars & austerity hitting hard as folk cut back.

Don't do day trips to the sea, short breaks & countryside anymore. It's a weeks holiday away. Wife walk to work most of the time now due to congested roads caused by constant roadworks that take 6 months to complete.

If the Electric Car takes off then the British Government will be totally buggered, a total loss of fuel tax revenue, road tax free (who will pay for millions of pot holes that never get repaired?) subsidy, and £5,000 a time huge bribe to buy discount on every new electric car sale for the the British taxpayer to pick up the bill is so called austere times & cutbacks.

It will all end in tears.

By IvorBiggen on 6 October, 2011, 7:25am

Just like any other comodity price could go lower..

Fuel prices are capable of falling as demand falls and supply is likely to increase so no reason why prices can't fall, it probably wont make a difference as we're looking at very tough times ahead.
Government revenue will fall across the board and we're look at a perfect storm some time in the next 12 months.

By the2beard on 6 October, 2011, 7:31am

Whatever happened to the promised fuel price stabilizer?

By MartinAston2 on 6 October, 2011, 7:46am

Lol

As soon as the corrupt banks stop pulling the governments strings the world will be a happier place.

By skyliner38 on 6 October, 2011, 8:24am

taxi6767

the price of oil is in the region of £1.10 to £1.01 on the markets this last few weeks, when oil was £1.49 a barrel fuel cost were about the same per litre as they are now, it is not just the goverment keeping the cost of fuel high, how can the price of the basic commodity fall but the cost paid for fuel stay, in a word profittering by the oil companies,once again rip off britain.

By taxicass on 6 October, 2011, 9:14am

Good news for the planet?

Isn't this good news all around? Surely it makes sense for people to be more careful in their use of cars. If we've all cut down on trivial trips it's good for the planet, good for our health and good for those who must still use the roads. I personally have reduced my mileage, but I enjoy my driving more as a result.

By penncv3 on 6 October, 2011, 9:51am

Tough times

I am out of work, and I can no longer afford to run my car. It is only a Diesel 306 which is quite good on economy, but even so, the price at the pumps means it hardly ever gets used. Public transport is a fiasco, so I rarely go out at all.
I am basically paying (inflated costs) for insurance and RFL for it just to sit there doing nothing. I will probably have to end up selling it unless prices become more realistic. I am hoping for more realistic prices, but not expecting them really.
I am not sure what to do to be honest. It is making looking for work more of an ordeal than it already is.
Scary.

By Tazfan2 on 6 October, 2011, 10:37am

@penncv3

Your comment is wrong. Not everyone is choosing to cut down on trivial trips. Some people -quite a lot, actually- live in the countryside where few trips are 'trivial' but are now caught between the proverbial rock and the hard place.
Job losses must have an effect on the amount of fuel bought, too.
For many, it is just a luxurious dream to have trivial journeys to cut down on. For them, recession's a b1tch.

By PedroConejo on 6 October, 2011, 10:44am

How much this is efficiency?

I have just done the maths, my 2005 focus costs 11p a mile to fuel.

10 years ago, my 1999 1.6 petrol Primera cost me... 12p a mile to fuel.

I spend the same, as when fuel was 80p a litre, but I use A LOT less fuel.

By OBMITTY on 6 October, 2011, 12:36pm

The Taxman keeps prices up

Because of the structure of petrol consumer price (= oil market price + lots of tax) it is easy for petrol companies to keep high consumer prices although oil market prices go down considerably.
This at the same time is also in the interest of the government because it can collect more money from tax payers.
These are the main reasons why petrol prices don't go back down when oil market price returns to lower level.

By JerryFin on 6 October, 2011, 12:48pm

The price of fuels has a direct link to the traders and speculators
who buy all they can and sit on the tanker cargo until it is time to
make even more profit from the liquid gold.
This coupled with more stupid decisions by more and more stupid politicians to spend more on such as foreign aid to
countries that can afford nuclear weapons is also the reason.
Where oh where is Oliver Cromwell???

By williamsdjp on 6 October, 2011, 12:52pm

Where did 1.7bln come from? Oh, comparing to 2008!

186.5 + 330.7 + 31.2 = 548.4 million litres less compared to 2010.
Comparing to 2008 seems weird as the story implies the loss of revenue is sudden.

By aje21 on 6 October, 2011, 1:28pm

Where did 1.7bln come from? Oh, comparing to 2008!

186.5 + 330.7 + 31.2 = 548.4 million litres less compared to 2010.
Comparing to 2008 seems weird as the story implies the loss of revenue is sudden.

By aje21 on 6 October, 2011, 1:28pm

Government is king....

Is anything here actually surprising? people are using their cars less as petrol prices continually rises. the interesting thing to watch over the next few months/years will be the government's reaction. the government won't react with duty cuts until a significant amount of people give up filling their cars - it doesn't appear that we're there yet. we keep getting told how the government saves us money by not putting duty up and postponing duty rises, a smokescreen for basically doing nothing while raking in the cash.
a forewarning for electric cars too, if they do take off look out for a new car tax system or even a levy on electricity. the world looks bright, the world looks rosy.........

By gevs10 on 6 October, 2011, 4:01pm

"Losing mobilty as a consequence?"...... Hardly!

Perhaps the AA's Edmund King might just consider that people are cutting out unnecessary car use. I put fuel in my car every time it reaches the quarter full mark. If I've used it less I get longer between fills and I price-check. I usually use supermarkets because, despite the b***ocks that the leading brands give better fuel economy, I still get around 70mpg on Asda diesel. I, for one, am no less mobile, but I'll use my car more sensibly. People used to go for a run years ago, but now that doesn't happen, because fuel costs so much. As for the loss of revenue for the Treasury..... well my heart bleeds!!!

By n50pap on 6 October, 2011, 5:19pm

Let's have some common sense here

Mr Biggen,

You say...

If the Electric Car takes off then the British Government will be totally buggered, a total loss of fuel tax revenue, road tax free...

Are you certain about this? Isn't there a chance, an outside possibility, that the government might change the rules when electric cars 'take off'?


penncv3

Isn't this good news all around?

Yes, it is. As anyone, who is not a totally stupid petrolhead can see.

By quintilian on 6 October, 2011, 6:10pm

Stop sending huge amounts British Taxpayers money off to Japan

Every newToyota Prius sale gets a huge £5,000 subsidy from the British Taxpayer in austere times and cutbacks.

Toyota Prius has sold 49,194 in the last decade in the UK

Toyota Prius 49,194 sales x £5,000 discount = £247,405,000

Why is the British Taxpayer still subsidising the Japanese Toyota Prius to the tune of £247 millions? We got told the subsidy would only be here until Prius hybrid gets up to speed. Its been around for a decade now.

We are all buggered if the Electric Car takes off.

By IvorBiggen on 7 October, 2011, 7:30am

Re: Stop sending huge amounts British Taxpayers money off to Japan

The Prius isn't eligible for the £5,000 electric car grant - it's not an electric car.

Thanks,
Auto Express

By Rhian on 7 October, 2011, 11:43am

Typical

I think IBs comment proves just how badly informed some motorists are on the subject of 'eco' vehicles. Stop listening to the junk spouted by petrolheads, people who have a vested interest in keeping big oil going and eco warriors. Do you own research it's easy enough. Speak to owners of hybrids/electrics directly and as many as possible.

Sure people are changing how they use their vehicles which will have a big impact but the number of more efficient vehicles will have an effect too. Also the number of motorists that have swapped over to diesel will contribute to the figures - existing diesel motorists will make fewer journeys but the number of drivers swapping over to diesel from petrol will prop up the diesel figures and undermine petrol sales.

I bet the government weren't this serious about saving the environment.

By steelcityuk on 7 October, 2011, 12:13pm

Not just less journeys?

Whilst it is probably true that people are cutting down on car use where they can, surely fuel use is destined to drop year-on year even if people do the *same* number of miles. The obvious reason is that the average new car is so much more efficient now than cars that are being scrapped from 10-15 years ago.

Just because the amount of fuel used is dropping, nobody can make the automatic assertion that people are being priced off the roads until the figures have been adjusted for how much more efficient the overall vehicle fleet is from , say 2008. Given that there's now 180bhp BWM 5 series that can do 60mpg+, I'd say quite a lot more efficient, especially in the high mileage fleet market.

By Oilburner on 7 October, 2011, 1:47pm

No more Alton Towers for me

A day out at Alton Towers ended for me several years ago. From this area, 3 gallons each way, the wear and tear on the vehicle, then the admission charges, the treats, etc etc etc...

By motter on 7 October, 2011, 6:18pm

The revenues from fuel duty are only going to continue to fall as most employers are now looking at home working to save office rental charges. Therefore there will continue to be less vehicles on the road, and escalating fuel charges for those still needing to travel. If the governments were really keen on public transport it woul not be necessary for it to break even. They would allow it to make a significant loss in the strive for lower emissions. A great cash cow will soon need to be replaced with other taxes I'm afraid.

By Boner73 on 8 October, 2011, 9:43pm

USE LESS, BUT STILL TOUGH TIMES AHEAD !

I.am definatly feeling the pinch now, i've made significant cuts on my car journey's & fuel useage, for short jouney's on my own i use my bike now & this keeps me fit & healthy & saves me money so i,am happy, i think most people who feel the pinch just need to adjust themselves to there income & needs so the recession hopefully has a minimal impact, thats the idea anyway. I own a 1.6 diesel ford focus & average 50 to 60 mpg & i,am still struggling to run it i can't ever imagine running a petrol engine car, to me it just does'nt make financial sence, but there are still people out there with plenty of money so they can, i just think most of us are feeling the impact of this recession with vat up to 20% on everything & these crazy fuel prices, oh well what to do we just have our little moan don't we then bend over some more & carry on taking it that's the british way NO BALLS !

By BEREAL on 10 October, 2011, 12:59am

Simple answer to reducing bill has been to use the car less and drive more economically on one side. Then for me to get to work I have been cycling all summer and just brought a brand new 50cc scooter for the 5 mile commute. At just over £2.50 a week in fuel and no car parking charges at work is saving me a packet. Wonder why I did not do it sooner? Also saves time getting home as do not get stuck in long lines of city traffic.

By JezyG on 10 October, 2011, 11:54am

can no longer afford to drive!

i cant afford the petrol prices anymore. i was forced to give up the car this year because of it. now i cant go anywhere, winters coming and i still cant afford to run a car. thanks a bunch!

government dont care either, too busy claiming false expenses.... corrupt toffeenosed idiots!

also notice how vegetable oil prices increased to discourage its use? yeah funny that....

By ihatepetrolduty on 10 October, 2011, 12:00pm

Blessing in disguise

Instead of using the car for short trips to the nearest shopping mall etc. I hope people decide to walk or take the bicycle, like the Dutch do. England comes second to the U.S. in having people with serious obesity. Get a life, literally. Go exercise, and stop the self-pity.

By voyager on 11 October, 2011, 7:38am

The potential dawn of a Fuel Marshall Law enforcement.

I wonder how much of this latest claim is hard fact and how much is massage?.
It would be interesting to know what the total of lost revenue is from discounted fuel at supermarkets etc.
We keep getting told that these are desperate times and we are all in it together,I DON'T THINK SO.
How long will it be before the governments maybe even the current coalition make it illegal to discount fuel?.
Does any discount really affect The Treasury or is the discount off the pre-tax figures?. If the petrol producers are really making so little profit who is really discounting the fuel?.
People on low and barely manageable fixed incomes are the real victims here.
The fuel buying Pensioner Power Brigade should be making a stand here. I understand that we are in greater numbers than the next generation of potential voters and teenagers in general.
Even going to the shops on a cycle becomes a 'second man' exercise,one to do the shopping,one to protect the bikes from the Low Life Thieves.

By TheTravellingRooster on 11 October, 2011, 9:04am

Wake up,smell the fumes.

How many of you out there remember the ' Woolies' pricing stratergie of old?, 19shillings and eleven pence (d) and getting it into our heads that it was ONLY nineteen shillings,no it was in reality A POUND.
Only 2p a litre,NO IT ISN'T it is 9.0922p per gallon. That is yet another £1.40p per 70litre tank full or 15.4gallon tank full.
We all well know that taxes are needed to run the ' Country Business' ,tax is a life blood. We are being bled dry,a transfusion is long over-due.

By TheTravellingRooster on 11 October, 2011, 9:39am

watchman

Of course people have been more careful, however this is the only way the governments can control the populous, keep prices high to price us off the roads. Really they would like to ban everyone but of course this would not be PC and no vote catcher. Any government that reduces prices would do quite well in a election though, but that like a fairy tell ..........Grimm.

By shad25 on 11 October, 2011, 1:48pm

Making your vote count.

Sadly I voted for the only party to address the price of fuel and who somehow mentioned they were going to introduce a fuel tax stabiliser. Well we now have promised through the good efforts of a few, a government debate on the fuel prices, and like the stabiliser which appears to have been totally forgotten, I have no doubt this will be overlooked in time and ignored, just like the plight of practically every normal hardworking soul in this country who have been shafted by these idiots in power, and still can't see that we are heading for yet another deep depression..... all the normal people know why, no jobs, little or no spending, most establishments heading for total disaster, that includes the motor manufacturers as well. If the price of fuel were to be decreased to a sensible level, then that would allow a few more pounds in everyones pension, pay packet or whatever means they get by....then more money can flow within our country and get us back on our feet, or even just keep peopples heads in buiness above the water line.... Ive sold my car, it gave me the means to keep solvent when redundancy and no chance of more employment came my way. How m,any more have taken to doing this?... Any government needs to get its head out of its backside and relaise we are heading for disaster as a country if manufacturing etc is alowed to fail and there is little or no cash flow within.....

By filz123 on 11 October, 2011, 2:28pm

"It's not 2p a litre, it's 9.0922p per gallon"

I've done the calculations and it turns out that 9.0922p per imperial gallon is actually pretty much 2 pence per litre. So it's not really true to say that it's not one but the other, because in fact it is both, because they are the same thing.

By tom_seddon on 11 October, 2011, 2:54pm

Declining living standards

I am not surprised that we are all feeling the pinch, high fuel prices, rising energy costs, sub standard roads, static incomes coupled with uncertainty and fear driving down our living standards, which is basically what we can afford or not!

The country is living beyond its means and therefore it is reflected in our deterioating living standards. Having good quality unfettered roads is an important and neccessary tool in getting Britain moving again and in profit.

By Eclectic on 11 October, 2011, 7:02pm

the gov is making billions from this. an interview with an arab person said that he was approached by the high profile people from UK and asked if they could cut the price of oil because its too expensive in the UK. the deal the arab proposed was that we will drill, process and refine, ship the oil to your country for free but give us the money your gov makes on top at the pump and UK representatives refused. the point the arab was making we do all this and still deliver fuel that is cheap but you guys add your duty, beef the price up too much and have the cheek to complain to us that price of oil is still expensive. EV are good but the average life of the batteries means that some years later they will need to be replaced, they are not cheap and manufacturing those batteries do more damage to the environment. we are being fooled in to buying EV vehicles by the UK gov with tax breaks but we should boycott buying them on that basis. engines are getting fuel efficient and provided they are looked after well will last longer.

By corsamani on 12 October, 2011, 8:50am

Save Fuel

Drivers in Inverness seem to have come up with novel ways to save fuel:

1. Don't stop at red lights - the time stopped just wastes fuel
2. Don't use headlights or indicators, especially at the local Tesco, using electricity increases fuel consumption
3. Take the shortest route across roundabouts and junctions-even if there is other traffic.
4. Park as close to your destination as possible, you can always ram your door into the car next door to get out.

Honestly, I've never experienced such bad driving standards as here in the Sneck.

By propw4sh on 12 October, 2011, 9:40pm

Mr. A Brown (Andy)

Its a rediculous situation the consumer is to spend more money so that the government can raise more tax to correct a failure in government.
the price of oil does not justify the pump price of fuel we are asked to pay for their shortcomings its time there were penalties for failure to balance the countries books.
The price of fuel is being held artificially high so that more tax can be paid into their coffers but it has backfired the consumer is buying much less .
I am certain had the current govenment stuck to their pledge to control fuel prices and reduce the price of a litre more would have been purchased and their tax revenues would be greater than they are.
It goes to show how inexperienced and inept they are they should step down in favour of experienced people who do not put party politics before the good of the country.
If you fail to balance the books in private enterprise you go bust and out of business they continually fail blaim the previous government and put up taxesand who ends up paying again the common Joe!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

By blakely61 on 13 October, 2011, 1:53pm

What happened to the elastic fuel duty plan?

Surely it would be in the government's interest to reduce duty when prices lower, encouraging more sales and more profit?

A fixed percentage has meant the government have lost £1billion, people are travelling less and the economy has suffered as a result. Mobility helps growth.

By AlexisV on 14 October, 2011, 12:24pm