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ARGUS COMMENT: Cut the duty and ease the pain

11:36am Thursday 3rd July 2008

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LORRY drivers' warnings of wildcat action over high fuel prices is yet another symptom of the problem affecting us all.

While we do not generally support such direct action we can fully understand the anger of lorry drivers whose businesses are being crucified by the seemingly endlessly rising price of fuel.

With no let up likely in the foreseeable future, it looks as though the situation will get much worse before it gets better.

The effects are now spreading far and wide.

Food costs are up as are energy bills for the home as well as fuel for cars and lorries.

Now high street giant Marks and Spencer says its poor performance in recent months can be blamed directly on the rising cost of fuel, which it says is deterring shoppers from visiting its out of town stores.

And it might have a point.

Our dependence on oil means the rising costs are impacting on so many areas of our lives and leaving many of us no option but to cut our spending.

We are in effect being held to ransom by the oil producing countries which control the price of fuel and over which we have little control and even less influence.

But while our government is right in saying there is not a lot it can do about the rising costs internationally, it could do something to alleviate the suffering.

The government could ease the pain by cutting fuel duty which would help haulage firms compete on a level playing field with their European counterparts.

In the long run such a move would also help the economy by keeping costs down for businesses and consumers.

It would be a radical move but it would be popular and sensible.


Your Say YourSouth Wales Argus

gareth, Newport says...
12:01pm Thu 3 Jul 08

We are in effect being held to ransom by the oil producing countries which control the price of fuel and over which we have little control and even less influence.


But we are one of the leading producers of oil!

The UK was actually a net exporter of oil during 1980 and only became a net importer during a year or two ago.

And if we continue to produce the majority of our own oil, why are we still beholdent on external countries and factors?

What am I missing here? Any comments really welcomed!

tim, Magor says...
12:10pm Thu 3 Jul 08

The problem for drivers is that the tax is too high.VAT is added on top of the duty so it is taxing tax.The oil at todays prices only accounts for less than 50p as litre.Governments can"t expect road users to fund the country,if thay need more money then raise income tax it is fairer, as the more you earn the more you pay.

Jeff Parry, Pontypool says...
1:35pm Thu 3 Jul 08

We are no longer a major producer of oil, we never really were. We are no longer producing enough oil to meet our own needs and therfore have to import more and more.

Our continental friends are currently selling diesel at £1.23 per litre and petrol at around £1.07. In Luxembourg it is even cheaper - so much so that most foreign hauliers are filling up there.

Our government could cut the fuel duty but need every extra penny they can get to shore up their finances, following years of over spending and borrowing.

They say that it is also more envirnmentally friendly to have high prices and thus cut car use.

How are we supposed to commute to work? I work in Bridgend and have noticed that my petrol is now costing me more than £7 exra per week. The public transport alternative is almost non existent.

I tried a few weeks ago and it cost me an extra £20 to get to the office as I had to use taxis as there were no available buses.

Mr Bump., Newport West says...
2:30pm Thu 3 Jul 08

Jeff Parry wrote:
We are no longer a major producer of oil, we never really were. We are no longer producing enough oil to meet our own needs and therfore have to import more and more. Our continental friends are currently selling diesel at £1.23 per litre and petrol at around £1.07. In Luxembourg it is even cheaper - so much so that most foreign hauliers are filling up there. Our government could cut the fuel duty but need every extra penny they can get to shore up their finances, following years of over spending and borrowing. They say that it is also more envirnmentally friendly to have high prices and thus cut car use. How are we supposed to commute to work? I work in Bridgend and have noticed that my petrol is now costing me more than £7 exra per week. The public transport alternative is almost non existent. I tried a few weeks ago and it cost me an extra £20 to get to the office as I had to use taxis as there were no available buses.
Well move closer to your work. Don't come on here moaning about the price of petrol.

Matt, Npt says...
5:09pm Thu 3 Jul 08

Well move closer to your work. Don't come on here moaning about the price of petrol.


What a clever man, why didn't we all think of that!

We can use Bump's logic with almost anything:
NHS is crap - Bump's reply: well dont get ill then.

Public transport is rubbish, Bump's reply: well walk then

etc etc (Sic)

Mr Bump., Newport West says...
6:04pm Thu 3 Jul 08

Matt wrote:
Well move closer to your work. Don't come on here moaning about the price of petrol.
What a clever man, why didn't we all think of that! We can use Bump's logic with almost anything: NHS is crap - Bump's reply: well dont get ill then. Public transport is rubbish, Bump's reply: well walk then etc etc (Sic)
The NHS isn't crap, and if i had a problem with public transport then i'd find alternatives such as driving myself which is what i do. It's also cheaper too. I am of the opinion that fuel prices should be doubled. It would certainly make people cut down on needless journeys and children may get a lot less obese if they have to walk or ride to school. Which In turn would free up NHS resources.

Matt, Npt says...
6:54pm Thu 3 Jul 08

Bump:

The car for some people has allowed them the ability to live in an economically depressed area and commute to another which offers employment. House prices in these employable areas may be beyond the reach of the commuter hence they remain in an area which causes them not through choice to use their car. Doubling petrol prices wouldn't put these category of people in a healthy position. Although i would concede it would take some boy racers off the road.

Hywel Jones, Newport says...
8:07pm Thu 3 Jul 08

I agree with Gareth and Mr Bump.

The price of oil is currently $145 per barrel, and we need to get used to the price of oil doubling every year or two. So we all need to work close to home and get ready for life without cars.

The good news is that this will result in more spare time for doing useful things - like growing your own food.

If this really is news to you, you've got a lot to learn about sustainability. There's no time to waste: you had better get reading now!

Mr Bump., Newport West says...
8:17pm Thu 3 Jul 08

Matt wrote:
Bump: The car for some people has allowed them the ability to live in an economically depressed area and commute to another which offers employment. House prices in these employable areas may be beyond the reach of the commuter hence they remain in an area which causes them not through choice to use their car. Doubling petrol prices wouldn't put these category of people in a healthy position. Although i would concede it would take some boy racers off the road.
If he,s commuting from Pontypool to Bridgend everyday that must be costing him about £15 to £20 a day, five times a week is £75 to a £100 a week. An extra £300 TO £400 a month goes a long way to buying a house down bridgend way. If he doesn't want to live down Bridgend the find a job closer to home for less money. Either way he'll be a winner by having around 2 hours extra a day not drving to and from work.

John, says...
11:08am Fri 4 Jul 08

Hywel Jones wrote:
I agree with Gareth and Mr Bump. The price of oil is currently $145 per barrel, and we need to get used to the price of oil doubling every year or two. So we all need to work close to home and get ready for life without cars. The good news is that this will result in more spare time for doing useful things - like growing your own food. If this really is news to you, you've got a lot to learn about sustainability. There's no time to waste: you had better get reading now!
Mr green is at it again.
you should have been born in the 17th century.

Matt, Npt says...
3:11pm Fri 4 Jul 08

If he,s commuting from Pontypool to Bridgend everyday that must be costing him about £15 to £20 a day, five times a week is £75 to a £100 a week. An extra £300 TO £400 a month goes a long way to buying a house down bridgend way. If he doesn't want to live down Bridgend the find a job closer to home for less money. Either way he'll be a winner by having around 2 hours extra a day not drving to and from work.


...which may force up house prices in Bridgend making the move prohibitive and cause upheveal in moving schools as well

Hywel Jones, Newport says...
6:13pm Fri 4 Jul 08

John, you said:
"... you should have been born in the 17th century."

What - you mean a time when atmospheric CO2 concentration was normal; sea levels were normal; the world's oceans were not polluted by plastic and chemicals; fish stocks were normal; we didn't create more waste than the planet could deal with; global mean temperatures were not rising at 10 degrees C per 100 years; the food supply wasn't reliant on cheap oil; and there wasn't a significant risk of mass extinction.

You never know. May be, some time soon, you might wish that you and your children were born in the 17th Century.

Have you started reading that book on sustainability yet?

Hywel Jones, Newport says...
11:26pm Fri 4 Jul 08

The unnamed Argus writer said:
"We are in effect being held to ransom by the oil producing countries which control the price of fuel and over which we have little control and even less influence."

It's more likely that the Argus writer just needs some lessons in basic economics.

In fact, it's the market that determines the price of oil. And with so many oil producing nations now also being net importers of oil, the price has to go up. Peak oil means that we have seen the end of cheap oil.

The only solution is for all of us to use less oil. The problems caused by reducing oil availability are not going to be fixed by Government handouts or small tweaks to taxation policies.

The only answer is for us to buy locally, work locally, reduce our dependence on oil, and generally get ready for life in the 21st Century. It's in these key areas that the Welsh Assembly Government can help us the most.

John, says...
10:27am Sun 6 Jul 08

Hywel Jones wrote:
John, you said: "... you should have been born in the 17th century." What - you mean a time when atmospheric CO2 concentration was normal; sea levels were normal; the world's oceans were not polluted by plastic and chemicals; fish stocks were normal; we didn't create more waste than the planet could deal with; global mean temperatures were not rising at 10 degrees C per 100 years; the food supply wasn't reliant on cheap oil; and there wasn't a significant risk of mass extinction. You never know. May be, some time soon, you might wish that you and your children were born in the 17th Century. Have you started reading that book on sustainability yet?
See, you have shown your true colours now.
I knew I was right about you, now you have proved it. Get a life before the planet is destroyed by British pollution.
'The end of the world is nigh'.

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