It has been revealed that some people will be spending more on fuel per month than they are paying for essentials such as their food and mortgage payments. For many people, their fuel is costing £700 every month to get to work and back, more than their mortgage, according to FairFuelUk’s Peter Carroll. He added that this could have a damaging effect on people’s lives and could even result in people having to give up work.
Incredibly, fuel duty is due to go up even more as of next month, by 1p per litre and the Daily Express is campaigning for the Chancellor of the Exchequer, George Osborne, to make a u-turn and not implement the rise. In reality, based on inflation the increase is actually 5%. Over 60% of the price we pay for fuel comprises taxes and duties and the Government will raise over £26 billion this year from it.
On average, unleaded fuel costs just over 130p and diesel now is approaching 140p. It cannot be too long before either motorists start voting with their feet and protesting, those that can afford to switch to greener automobiles, or public transport, or we all go bust. Mr Carroll fears the latter and, given that some people are spending more on fuel than their mortgage, homes will be at risk.
Recent political problems in oil-producing countries such as Egypt and Libya in particular, have kept the price of crude oil high and it is unlikely to come down, as demand is still high.