Why I’m not signing any fuel price petitions
I’ve lost count of the number of people who have tried to get me join Facebook groups, or sign petitions against the recent fuel price rises. There are two very simple reasons why the price of fuel is so high — one is a simple combination of supply and demand, which as a free marketeer I can’t complain about, and the other is the rate of duty the UK government imposes on petrol and diesel.
Many people might quite reasonably argue that fuel duty is extortion, but our government needs to get its money somehow, and just as we haven’t really heard how a Conservative government would reinstate the 10p tax bracket, I’m not really convinced that anyone has any serious proposals to reduce the tax rate on fuel, without a commensurate increase in other taxes, such as income tax. So to anyone who is protesting about the cost of fuel, I have one simple question — which would you rather have higher income tax, or higher tax on fuel? Personally, I’ll take the tax on fuel any day, for one simple reason — it is much easier for most people to avoid fuel tax than it is to avoid income tax.
Having listened to the the news today, it seems that Gordon Brown will do everything he can to tap on other international leaders’ shoulders, and deflect attention away from his own government’s contribution to the high cost of fuel, so whether we like it or not, high fuel prices are going to be with us for a long time coming. People can protest all they want, but even if there are reductions in fuel duty, these are only likely to knock a few pence off the cost of fuel at the pumps. Across The Pond, It also looks like Hillary Clinton’s promise of a fuel tax holiday will shortly die a death, along with her presidential campaign, and I’ll have to say that I wish a good riddance to them both.
I know it is easy for me to say that people who really want to reduce their fuel bill should buy a smaller car, or convert to LPG, but I think it is far more sensible to try and leave the car at home and try walking or cycling. Try doing this for just one week, and you might well find that there is a lot more on your doorstep than you might think. Apart from the money saved, there are huge health benefits to be gained from cycling even just a few short miles each day, not to mention the environmental benefits that any self-powered transport brings. For longer journeys, I’ve always felt that going by train is a much better use of time, especially when travelling to and from London where congestion alone makes driving there unthinkable, long before any additional charges come into account.