Better Transport

Let's correct a few myths about motoring taxes.

Myths:

• We have the most expensive petrol in Europe
• We pay too much tax on our fuel
• Motoring has become much more expensive
• Drivers already pay their full environmental impact
• Road transport is not important in the battle against climate change

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MYTH: We have the most expensive petrol in Europe.

FACT: This just isn't true. UK petrol is the 9th most expensive in the EU. Although our diesel is the most expensive, unleaded petrol is more expensive in France, Germany and Italy.

The The European Commission maintains records of EU petrol prices.

Top 5 EU petrol prices, December 2009

MYTH: We pay too much tax on our fuel.

FACT: Fuel duty has not been increasing in line with inflation since 2000, with no increase between 2000 and 2006. Even with the small increases since, fuel duty at the start of 2010 still remains 11% lower in real terms than it was in 1999.

Tax, as a percentage of fuel, is lower than it has been over the last decade. In December 2009, with unleaded at £1.07 a litre, tax was 65% of the price; between April 1999 and 2009 the average was 72% (see Transport Statistics Great Britain 2009, page 55, pdf).

Given the long-term inevitability of high fuel prices it makes economic and environmental sense to reduce our reliance on fossil fuels, and move towards a low-carbon economy, rather than wanting to attempt to drive more and get cheaper fuel.

MYTH: Motoring has become much more expensive.

FACT: The cost of motoring has fallen 14% in real terms since 1997, whilst the cost of travelling by rail has increased by 13%, while travel by bus and coach has increased by 24%. Revenues raised from any fuel duty increases must be ring-fenced for public transport to improve travel choices, which was promised by Gordon Brown in Budget 2000.

MYTH: Drivers already pay their full environmental impact.

FACT: This is simply untrue - unless you ignore most of the costs of motoring. The Government commissioned a report in 2001 which calculated the rough impacts of driving. Adjusting for inflation, driving costs us between two and three times what it brings in in taxation. A Cabinet Office report (pdf) in 2009 suggested that in addition to the costs of congestion (around £11bn) the costs to society of poor air quality, ill-health and road accidents in urban areas alone exceed £40bn.

There are also many impacts which simply cannot be given a price tag, such as the death of a loved one in a collision or the loss of ancient woodland and treasured green spaces to new road building. 

MYTH: Road transport is not important in the battle against climate change.

FACT: CO2 emissions from transport are rising, and emissions from road transport alone make up 25.2% of the UK CO2 emission total (Transport Statistics Great Britain  2009, table 3.7. pdf). And there's plenty of room for improvement: commuting is 24% of our transport emissions but 91% of people commuting by car are sitting in a car on their own (DfT Carbon Pathways, pdf 65kb).