Tiger.co.uk Comments on Latest Petrol Price Study

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The RAC Foundation recently published its factsheet on fuel, cars and drivers in the UK. Tiger.co.uk, one of the country’s most popular websites for cheap car insurance quotes, has analysed the paper and highlighted some of the areas of concern for motorists.

Rising Prices At The Pumps

Rising Prices at the Pumps

A massive 58.7% of the price per litre is going in government taxes.

According to statistics published by the RAC, 91% of the passenger miles travelled in the UK are in cars, with only 8% on trains and 1% on planes. It may come as no surprise then that almost all of the 35 million drivers in the UK have concerns about the cost of car insurance and the increasing price of fuel.

A breakdown of petrol prices in early September shows that a massive 58.7% of the price per litre is going in government taxes.

The rate of duty on fuel was last changed in March 2011 when it was reduced by 1p to the current rate. This positions the UK as having the eighth highest petrol price within Europe and the second highest price for diesel.

The cost of running a vehicle has rocketed for motorists in the UK over recent years. Pressure from rising prices at the pumps and an increase in insurance premiums has meant that drivers have had to cut back in other areas. Last week two leading supermarkets announced that they were going to cut up to 3 pence per litre off the price of petrol but there is no indication that this will be followed by a move by the government to freeze, or better still, cut the duty on fuel.

Across the Atlantic in France however, the French government has worked with major oil companies to agree a cut in fuel prices by up to 6 cents (4.8p) per litre for three months in an attempt to support drivers hit by the recent price increases. The Petrol Retailers Association (PRA), a body that represents the independent fuel retailers in the UK, has been urging the UK government to do the same, but it remains to be seen if any action will be taken.

In light of the continuing concern about the costs of motoring in the UK, the Office of Fair Trading (OFT) has commenced two projects recently that aim to investigate the underlying issues; a price review on the cost of petrol and diesel is taking place to understand whether reductions in the price of crude oil are being reflected in reductions at the pumps; and the car insurance industry has been referred to the Competition Commission in the light of questions about how repairs are being carried out as a result of claims.

Andrew Goulborn, Tiger.co.uk’s Commercial Director, commented: “The cost of motoring is a hot topic at the moment and with the costs of petrol and diesel looking to set new record highs the situation continues to place pressure on household finances within the UK. Drivers can cut costs by following some advice about how to reduce the amount of fuel they use. Things like making sure your vehicle is not too heavily laden, keeping tyres at the recommended pressure and looking out for the best deals at the pumps. As with car insurance quotes, prices vary so it always pays to shop around.”

About http://www.tiger.co.uk

Tiger.co.uk is a trading name of Call Connection Ltd. Tiger.co.uk is a UK based, independent motor insurance comparison site, offering insurance quotes from over 150 insurance brands. Call Connection Ltd is authorised and regulated by the Financial Services Authority (number 308374).

Attrribution - http://www.racfoundation.org/media-centre/oft-review-of-fuel-prices

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