Andrew Allison

The cost of ‘filling up.’

In fuel costs, oil on January 3, 2008 at 8:46 pm

I filled my car up with diesel yesterday and paid £1.05 per litre. Also, yesterday, the price of crude oil rose to $100 a barrel for the first time.

I am not an economist, but I do know that when the cost of fuel is high, it puts inflationary pressure on the economy. I also know the chance of further reductions in interest rates are less likely as a result. I also know that the dollar has been weak against the pound for a few years now. Why is it then we have the highest fuel costs in western Europe?

I have said this before and will say it again: The government has to stop thinking about the short-term ringing of the cash registers at the Treasury and think of the long-term interests of the British economy. A reduction in fuel duty has to happen now; but I am not going to hold my breath.

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  1. frankly, I think you’ve got more chance of Durham winning the County Championship than getting a cut in fuel duty.

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