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Motorists call for halving of fuel tax5 June 2011by Pat Hoyle In a YouGov survey of 2,500 motorists commissioned by Admiral Insurance, on average, motorists were looking for a reduction in VAT and fuel duty to 31% of the total price. Currently the proportion of the pump price paid in tax is 60%. The study found that 92% of motorists felt 'ripped off' by the current price of fuel and most were taking measures to reduce their motoring costs. Over half (51%) say that they are driving less (a slight increase on earlier studies reported on this site), while 18% had ignored a problem or fault with their vehicle owing to the high cost of mechanical repairs. 15% had reduced the frequency of or stopped altogether their car servicing, while 8% had driven on damaged or bald tyres to avoid the cost of tyre replacement. Admiral's findings that motorists are anxious to cut costs are consistent with several other surveys that we have reported here. Our own research, for example, found that 63% prioritise buying cheap car insurance over getting the right cover, while the RAC had found that 95% want the Government to reduce the price of fuel. Another study reported that 82% of motorists are angry about rising costs and excessive potholes, while one survey found that as many as a half of drivers would be willing to drive on bald tyres. The cost of buying and running a car is now the biggest determinant of car choice, while car sales have fallen by 10%. Motorists have also been willing to use fraudulent means to reduce their costs, as when they buy car insurance without disclosing past claims or license points, or they allow, in the cae of an under 25, an older driver to 'front' their motor insurance. Indeed, as many as 53% see car insurance 'fronting' as acceptable and 20% of young drivers admit to car insurance fraud. With many young drivers facing an annual car insurance premium of £4,000 or more, several have driven without insurance and the Government's current estimate is that there are 1.4m uninsured drivers on our roads. This figure is expected to drop substantially with the introduction of continuous insurance enforcement (CIE) later this month. These increasing motoring costs, especially of fuel and car insurance, have led to fewer young people taking their driving test in view of their inability to afford to run a car. The Government is well aware of the plight of motorists and tried to help by reducing fuel tax in the last budget but their current need to reduce the deficit severely limits what they can realistically do. However, as petrol prices increase, tax returns from fuel sales also increase and it is reasonable for motorists to expect the Government to reduce fuel duty further as prices increase. As we have reported recently: Motoring organisations call for EU petrol price review, groups that represent motorists across Europe believe that pump prices are being set unfairly and the process needs to be overhauled and rendered more transparent. In view of the ever-increasing cost of fuel many will have to make radical lifestyle changes that include moving to smaller and better insulated homes that are likely to be closer to their workplaces and amenities while these homes will have smaller and more economic cars parked in their driveways. Dependent as we are on fossil fuels in the developed world, it is the cost of fuel, above most other factors, that can have the greatest impact on our quality of life. |
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