Petrol sales slump demonstrates motorists have had their fill
News that British motorists bought 2 billion fewer litres of fuel in the first half of 2012 than they did in the same period in 2008 before the recession demonstrates that the ever escalating price is driving motorists off the roads.
RAC technical director David Bizley says: “This drop in petrol sales is yet more evidence that motorists are finding it increasingly hard to stomach escalating fuel prices and are ultimately driving less.
“The reasons behind this are many. Research from the 2012 RAC Report on Motoring* found a steady reduction in the number of discretionary journeys people are making. In addition to this there is also a trend for buying smaller vehicles and driving in a more fuel efficient way. Unfortunately people are very quickly running out of options to reduce the amount of their income they have to spend on putting fuel in their cars.
“The next quarter’s fuel sales figures will be critical. If they show a further drop then this will indicate a true cause for concern. The planned 3p a litre rise in fuel duty planned for January 2013 could be the final straw for Britain’s motorists.
“The drop in petrol sales is also bad news for the Treasury as it means less money is being collected in duty. We strongly urge the Government to cut the amount of duty charged on fuel as this will do more good for the country’s finances by actually stimulating growth.
“And there is a need for greater transparency in pricing and duty on fuel. The consistently high price of fuel is hitting business and rural inhabitants hardest. As a supporter of FairFuel UK RAC is calling for the introduction of fuel receipts which clearly break down the cost so motorists can see what share the fuel companies get and what they are paying to the Government in duty and VAT each time they fill their tank.
RAC welcomed the recent OFT announcement of a thorough investigation into fuel prices and the failure of fuel companies to pass on price reductions when the oil price drops. Today’s news makes a full review of fuel pricing a priority.
RAC has been championing the cause of motorists since 1897 and has led the campaign to highlight the impact of rising fuel prices on drivers and businesses. As a key supporter of FairFuel UK, RAC has been instrumental in raising the issue of fuel duty in Parliament and lobbying for future duty increases to be scrapped.
*The RAC’s Report on Motoring 2012 is a comprehensive study of the behaviours and attitudes of more than 1,000 motorists which has been running for 24 years. The latest report found the cost of motoring to be the primary concern of motorists with 30% saying that it is their number one concern, and 61% that it is one of their top five concerns. Over half of drivers have cut down or combined the journeys that take this year in order to cut costs.”
