Archived press release

Green cars could save drivers more cash than fuel cuts

7 September 2005

Drivers could save hundreds of pounds a year in fuel bills by choosing a greener car, according to figures released today by Friends of the Earth. The environmental campaign group has calculated that motorists could save more money by choosing a more fuel efficient car than they would from a 10p cut in fuel duty (if petrol reaches £1 a litre). It is urging the Chancellor to resist calls to cut fuel duty and to do more to encourage motorists to drive fuel efficient vehicles.

Using Government data [1], Friends of the Earth has calculated the cost of fuel needed to drive a car 12,000 miles a year and has found that:

• For drivers wanting a smaller car [2], buying a Citroen C2 rather than a Ford Fiesta could result in a fuel cost saving of up to £460 a year, or almost £40 a month. Cutting fuel tax to reduce prices from £1 per litre to 90p per litre would save the Fiesta driver around £125 a year.

• For drivers wanting a family car, buying a Toyota Prius rather than a Ford Mondeo could result in a fuel cost saving of over £630 a year, or over £50 a month. Cutting fuel tax to reduce prices from £1 per litre to 90p per litre would save the Mondeo driver around £145 a year.

• Even gas-guzzling 4x4 drivers have a choice. Buying a Toyota RAV 4 rather than a Land Rover Discovery could result in a fuel cost saving of over £1500 a year, or over £120 a month. Cutting fuel tax to reduce prices from £1 per litre to 90p per litre would save the Land Rover driver around £290 a year (see below for details of other calculations).

Friends of the Earth is calling on the Chancellor of the Exchequer to give drivers greater incentives to buy greener cars, by announcing in November's Pre-Budget statement. The campaign group wants him to cut Vehicle Excise Duty (VED, or car tax) on the most fuel-efficient cars to zero, to take immediate effect phase in substantial increases in VED on gas guzzlers, rising from the current maximum of £165 to £800 a year by 2008.

Friends of the Earth's Senior Transport Campaigner Tony Bosworth said:

"Buying a fuel efficient green car instead of a gas-guzzler could save drivers hundreds of pounds a year in fuel bills. The Chancellor should encourage more drivers to buy greener cars by putting up car tax on gas guzzlers and cutting it for the most fuel-efficient models. Cutting fuel tax won't help tackle climate change, but greater incentives to use greener cars will."

"The Government must also invest more, particularly in rural areas, to provide real alternatives to having to use a car. It should also look at other measures such as council tax rebates for those hardest hit by fuel price rises, such as people in rural areas on low incomes. Cutting fuel tax might keep the motoring lobby happy, but it will make the Government's failing climate change strategy even worse."

Earlier this week analysis by Friends of the Earth [3] showed that UK emissions of carbon dioxide, the main gas causing climate change, grew by 2.5% in the first half of 2005. This means that the UK looks set to breach its emissions reduction target under the Kyoto Protocol. Transport is a major source of carbon dioxide emissions in the UK, accounting for 23% of total emissions [4]. Transport emissions are forecast to rise significantly over the next decade.

Friends of the Earth is campaigning for a new law obliging the government to make year-on-year reductions in UK carbon dioxide emissions. A strategy to tackle vehicle emissions must be part of this. More information: www.thebigask.com

Notes

[1] Data from the Vehicle Certification Agency www.vca.gov.uk

[2] Models in each category are a selection of those included in the `What Car' JD Power Survey 2005 - see www.whatcar.com - and models identified by the Society of Motor Manufacturers and Traders as the most or least fuel efficient in each category. Inclusion in these lists in no way constitutes a recommendation or endorsement by Friends of the Earth.

[3] Emissions Breach Kyoto Target

[4] UK Climate Strategy Review

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust