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By Jim Salkeld

The HMRC Advisory Fuel Rates are just 2 days old and are already beginning to look out of date.  I strongly suspect that they will need to be revised well before the next publication on 1st July 2008.  In my area in the Home Counties, diesel is already pushing £1.10 per litre and I would not be surprised to see it reach £1.25 before the end of the tax year.  This would not be all bad news if rising prices meant fewer driven miles as people start to use alternatives to the car, except that not only are there few real alternatives, but some of those that exist are increasing prices well beyond the rate of inflation.  I refer of course to the rail price increases announced to the fury of commuters at the turn of the year.  Not a good start to the 2008 green travel agenda then!

I have to confess that I am probably in a minority in believing that rising fuel prices are the key to controlling CO2 emissions.  I may even be on my own (there’s a horrible echo around here), but logic says that this is the only fair way to manage driven miles effectively.  The more you drive, the more you pay and if you have a high emission car then you pay more.  The revenue raised on fuel tax and the VAT on it, (how did HMG get away with that piece of double taxation anyway?) should be spent on improving alternative travel networks as well as new roads and the upkeep of same.  If it was, and we could all see some results of our investment, there would probably be more support for this approach.  As things stand though, 2008 is likely to start with fuel-related conflicts on several fronts that will not be helped by AFR trailing actual costs.

For more information contact Jim Salkeld at Opticar on 01582 518181.

Toomey Opticar Limited is a wholly owned subsidiary of Laindon Holdings Limited, and a member of the Toomey Group.