As fuel costs soar yet again, Prime Minister David Cameron has floated the idea of a “fair fuel stabiliser” to stop drivers being priced off the road. But how would it work? Confused.com’s Stephen Jones takes a closer look.
Motorists in Britain have long bemoaned the soaring cost of fuel, which has crept above the £1.30-a-litre mark in recent weeks. Consecutive governments have failed to deal with the problem and, with scenes of civil unrest dominating media reports in recent weeks – students in particular have made headlines after smashing windows and poking royalty (see below) – the Con-Lib coalition could do without a repeat of the nationwide fuel protests Tony Blair encountered 10 years ago.
Perhaps sensing that trouble may be afoot in the months ahead, David Cameron used a speech at Caterpillar’s factory in Leicester to float the idea of a “fair fuel stabiliser”, a price mechanism by which the government could reduce fuel tax when petrol inflation is at its highest.
A nice idea, perhaps, but this isn’t the first time the Conservatives have mentioned it. Indeed, a consultation on the measure was actually promised in their pre-election manifesto. There was, however, no mention of the stabiliser in the coalition agreement, and the proposal looked to be dead in the water by September, when an Office for Budget Responsibility study dismissed the idea for being too costly.
All of a sudden, though, the stabiliser has mysteriously re-appeared. Whether this is political posturing, or a genuine attempt to offset rising costs for drivers, it’s difficult to know. What’s certain is that most motorists would welcome any moves to drive down the price of fuel.
If David Cameron really does want to help drivers, he might also want to keep a close eye on next week’s debate into the rising cost of car insurance. The Transport Select Committee will meet to discuss the issue for a second time on 11 January, after hundreds of you contacted us to tell your stories about soaring premiums.
Goodbye!
And that's my last rant on Two Pennies Worth... I'm moving onto pastures new, so a big thanks to everyone who's followed this blog and especially to everyone who has commented or emailed me with your stories.
Farewell, it's been emotional!
Got a view on the rising cost of driving? Would a fair fuel stabiliser work? Have your say by commenting below or email: editor@confused.com.
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