Government must take steps to lessen impact of fuel tax say FOE Cymru

Friends of the Earth Cymru (FOE Cymru) have responded to the continuing fuel price protests. The group says that, apart from the unwelcome fluctuations due to world oil price surges which are causing short-term problems, the higher fuel prices are beginning to help to protect the world's climate from dangerous climate change. However, Government should make some moves to ensure that the increased costs are equitable to the poor and that the extra revenues clearly need to be put into transport spending.

Neil Crumpton, transport spokesperson said:

"While we believe that fuel prices are in the region of where they need to be to combat climate change and tackle traffic growth, the government could introduce some rebates. Firstly, the emergency services, whose annual budgets are set should be compensated for oil price surges. Secondly, a rural council tax rebate for the lowest housing bands should be considered to offset fuel hardship in the deeper rural areas where improving public transport services is less practicable. And overall, the extra revenues should now clearly be spent on extra transport provision."

FOE Cymru have long argued for the fuel duty escalator in order to encourage the purchase of fuel efficient vehicles and discourage unnecessary car journeys. Such measures would reduce UK greenhouse gas emissions as part of its strategy to reduce dangerous climate change. Average car fuel efficiency is around 35 miles per gallon but vehicles that are twice as fuel efficient are available, so motorists can reduce their exposure to high fuel prices.

Neil Crumpton continued,

"The developed world must remember that the ice caps are melting and more and more freak weather events are devastating communities and killing thousands around the world, so the UK along with all developed countries needs to become much more fuel efficient."

On tax, FOE Cymru say that the Conservatives should not be calling the road fuel duty escalator a 'stealth tax'. A duty escalator is properly the opposite of a stealth tax. The precise point of a duty escalator is to advertise it loud and wide to give the public ample notice of progressive and predictable annual price increases so people can plan accordingly. In the case of road fuel duty, the escalator which was introduced around 1993, was later proposed to run till about 2002. There has been ample time for more fuel efficient vehicles to be purchased and to become available in the second-hand markets. Unfortunately, the tardy phase-out of company car incentives has resulted in the UK car pool being over-powered and less fuel efficient than would otherwise have been the case, yet fuel-efficient car sales are rising.

The world oil price surge, which is caused in no small part by high US energy demand due to low fuel taxation has introduced an element of unpredictability which is causing short-term pump price concerns. FOE Cymru say that they will be lobbying the US at the next global climate change talks in The Hague to tackle their inordinately large fossil fuel consumption.