I recently read a report in the Daily Telegraph, in which it is announced that Gordon Brown is to show his "green credentials" - by increasing the price of both petrol and diesel.
What's so new and green about that? Governments have been raising fuel duties and using motorists as a milch cow for decades. The fact that he intends to increase diesel duties belies the green motive. If diesel duties were relaxed, more people would buy diesel powered cars, which are much more fuel efficient. (As an example, a friend of mine has just sold her petrol powered VW Polo 1.2 (55bhp) in which she got ~40mpg, and now drives a Skoda Fabia 1.9 TDi (100bhp) and is getting ~68mpg.) And, given that more diesel than petrol can be produced from the same volume of crude oil, the nation's motoring needs could be met using much less crude oil than is currently the case.
With fuel prices in Britain amongst the highest in the world, does Gordon really believe that people are making wasteful journeys which they will no longer make if the fuel price goes up? I doubt that such a rise will deter the Chelsea Tractor drivers!
Gordon has himself said that he'd like to wean Britain off petrol, and begin a push for other fuel technologies like E85. So it's funny that there is never any talk of
incentives for these alternative fuels; only
disincentives to use conventional fuels.
A friend of mine living in Somerset tells me that there are only about FIVE outlets selling E85 in the west country. If I were Gordon Brown, and I was sincere about the green motive for altering motoring taxation, I would introduce a zero rate tax disc for E85 vehicles registered in 2007 and 2008. That would get E85 into the public eye and more people would start using it. As things stand, the tax disc IS slightly cheaper for an alternative fuel vehicle. My diesel car is in band D and I pay £135 for a 12 month tax disc. For an alternative fuel vehicle, the Band D tax disc costs £125.
It is clear that with so few E85 pumps around, the treasury is not going to lose a fortune by giving a tax break to drivers of E85 vehicles. I'm disappointed that Gordon doesn't see it that way. But then I'm not a socialist!
DVLA Vehicle Duty Rates