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Old 10-08-2011, 12:01 PM   #1 (permalink)
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Fuel Sales in UK Plummet

According to Auto Express.

Seems like price is affecting demand.

Quote:
Petrol and diesel sales are plummeting as a result of high prices, research from the AA shows. And its costing the Government billions in tax revenue.

Sales of petrol fell by an incredible 186.5million litres in the first quarter of the year, compared to the same period in 2010. The AA puts the drop down to hard pressed motorists being driven off the road by record pump prices. And things just got worse in the second quarter, with sales crashing by a further 330.7million litres.

Although diesel sales were more resilient dropping by 31.2million litres over the last six months compared to 2010 the extent of falling sales is brought home by a comparison with pre-recession sales levels.

Government figures show that between January and June this year, 1.7billion fewer litres of petrol and diesel were sold compared to the first half of 2008. That equates to 1billion in lost revenue for the treasury.

Read more: Fuel sales plummet | News | Auto Express

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Old 10-08-2011, 12:48 PM   #2 (permalink)
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Perhaps the old method of collecting road related taxes needs to be revamped for modern times?

The gov't could try to make up for the lost revenue by increasing fuel taxes, but that would further reduce the amount of fuel consumption (and further decrease revenue). This would have the effect of promoting fuel efficient vehicles, or even electrics.

They could also stop taxing fuel and instead charge a fee based on the distance driven by each vehicle. I imagine this would encourage a lot of cheating in the way of modifying odometer readings.

Does this latest figure point to a near-future peak oil for the UK?
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Old 10-08-2011, 01:37 PM   #3 (permalink)
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Look at it this way, if less Fuel is being sold, less wear is being put on the roads, so the tax should work out about right (up until you get to very few liters and base (time only) wear on roads.)
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Old 10-08-2011, 01:51 PM   #4 (permalink)
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Quote:
Originally Posted by dremd View Post
Look at it this way, if less Fuel is being sold, less wear is being put on the roads, so the tax should work out about right (up until you get to very few liters and base (time only) wear on roads.)
Great point! Not only less wear on the roads, but less demand for expanding roadway capacity since there are less vehicles on the road.

As much as I despise rising fuel costs, it's an inevitable and necessary evil. I'm looking forward to EVs, and eventually, autonomous vehicles, but fossil fuels must be priced out of the market before these other things are developed and implemented.
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Old 10-08-2011, 02:02 PM   #5 (permalink)
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Oops - realised this is the wrong place, can anyone move it to the lounge please ? Apologies to those who stay out of the lounge.

Quote:
Originally Posted by redpoint5 View Post
Perhaps the old method of collecting road related taxes needs to be revamped for modern times?

The gov't could try to make up for the lost revenue by increasing fuel taxes, but that would further reduce the amount of fuel consumption (and further decrease revenue). This would have the effect of promoting fuel efficient vehicles, or even electrics.
You are so last decade compared to uk.gov We are due another duty (tax) increase next January. Its worth noting those figures - a drop of 1.7bn litres results in 1bn less in tax take. Now if the gov.us.com did that ? Hmmm.

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Originally Posted by redpoint5 View Post
They could also stop taxing fuel and instead charge a fee based on the distance driven by each vehicle. I imagine this would encourage a lot of cheating in the way of modifying odometer readings.
uk.gov (the old one) promoted the idea of road pricing - pay per mile, and more in congestion periods. But they also had the idea of e-petitions allowing the public to express an opinion on any idea.

Guess what ? It was not universally popular. A uk.gov minister suggested that the guy who came up with the e-petitions idea was "a pratt", which of course also expresses how much in touch with the people the government of the UK is.

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Originally Posted by redpoint5 View Post
Does this latest figure point to a near-future peak oil for the UK?
In terms of production, the UK is already past peak - unless we go deeper and deeper into the North Sea. But we don't just use oil from here, we import it too - just like the rest of the EU and the US, so we are also subject to world prices, but less affected by changes.
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Old 10-08-2011, 02:07 PM   #6 (permalink)
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Old 10-08-2011, 02:12 PM   #7 (permalink)
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This guy sums up my view of uk politicians quite well.

Conservative conference 2011: It's time for the party to end! | Mail Online

Anyway this is not about politics - the interesting aspect is that people are avoiding buying fuel. Some of this could be down to more unemployment and of course less leisure travel, and some down to people downsizing - there are quite a few people on 'bug' forums doing this.
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Old 10-08-2011, 02:28 PM   #8 (permalink)
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Quote:
Originally Posted by Arragonis View Post
Seems like price is affecting demand.
How many % is that in relative values ?

Down by X million liters or Y billion in taxes says very little unless the total amount is known.


Car sales in Belgium were at an all time high in september.
Many are buying the G'ment sponsored (but not so) green cars, which will consume less fuel.

That fits in nicely with the overall reduction in fuel being used for transport that we've seen over the last years..
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Old 10-08-2011, 03:26 PM   #9 (permalink)
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All interesting / good points.
I'd be for congestion charges in high traffic areas. I doubt that many in the US would be but . . . .
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Old 10-08-2011, 03:41 PM   #10 (permalink)
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Quote:
Originally Posted by Arragonis View Post
In terms of production, the UK is already past peak...
...was wondering more about peak consumption than production.

Quote:
Originally Posted by dremd View Post
All interesting / good points.
I'd be for congestion charges in high traffic areas. I doubt that many in the US would be but . . . .
People already pay the 2 most precious things to them for commuting in highly congested areas; time and money (burning fuel in stop and go).

Implementing more bureaucracy seems a waste of resources.

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