07th November 2009
Fuel duty could be bad for the planet

Complaining about the price of petrol has gone spectacularly out of fashion. It wasn’t long ago — only nine years, in fact — that the country was so furious at petrol prices of 80p a litre that protests broke out and refineries were blockaded. How times have changed. The cost of a litre of fuel now averages 109p, according to PetrolPrices.com, 35 per cent more expensive than in 2000, yet there is barely a whimper of discontent.

With a Pre-Budget Report imminent, and a budget deficit the size of South Africa’s entire economy to fill, such apathy can mean only one thing — significant increases in fuel duty are on the road ahead.

Motorists already face a 2.5 per cent increase in fuel costs when VAT goes back to 17.5 per cent in January, along with a 1p above-inflation increase next April. Assuming that oil prices do not increase in the meantime, which is a big assumption, this is likely to force petrol to about 115p a litre, only 4p less than the record high of November last year.

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