May 20, 2008

A Poll for the AA has found that high fuel prices are making drivers think twice about using their cars.  17,500 members were polled with more than a third (37%), saying they had decided to travel less by car, with almost a quarter (21%) including it in a range of cost cutting measures. 

The combination of supply fears and the weakening value of the dollar have contributed to driving the price of oil to record levels, and there is no sign of the price increases stopping. 

The Petrol Retailers Association adds to drivers woes saying that average prices could go up as much as 5 pence a litre by the weekend.

Ray Holloway, director of the Petrol Retailers Association commented, "I expect that motorists and diesel users in particular are going to pay more at the pumps in the coming weeks, possibly as soon as the bank holiday, from where they are now,"
"The simple reason is that the wholesale price of oil sent diesel up 3 pence last week and there's more to come."

Petrol has increased in price by around ten pence per litre in the last three months, diesel by around fifteen pence.

There have been calls for the government to reduce the level of tax currently levied on fuel but with the increased cost boosting the chancellor’s coffers and reducing congestion at the same time, there seems little chance of any help from Downing Street.

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