MPG rises having no effect

Continual hikes in fuel duty are wiping out the benefits of improving engine efficiency. And it’s a trend that’s set to continue, as the Chancellor refused to cancel the planned three pence per litre (ppl) duty increase set for August in last week’s Budget.

Average petrol prices hit a record high of 140.20ppl last week, while diesel was at 146.72ppl.

Figures from the Society of Motor Manufacturers and Traders show average CO2 emissions of new cars have fallen 22.4 per cent from 164.9g/km in 2007 to the current figure of 134.7g/km.

That roughly translates to an improvement of 10mpg in fuel economy terms. However, petrol and diesel prices have rocketed by more than 50 per cent over the same period.

And as our graph shows, you’d need almost 20 litres less diesel to cover 1,000 miles in 2012 compared to 2007. But it would cost you around £30 more.