UK fuel rises 264 per cent

When asked what our number one ‘pet peeve’ is about driving, I think most of us would answer ‘the cost’. The RAC has just released its annual motoring report and confirmed after 25 years of driving; our main concern is the ever increasing costs.

Our dependency on cars is at an all-time high, with the number of cars on the road currently at 35.2 million, but does the cost of running a car affect the way we use it?

Fuel Costs

Fuel prices are based on supply and demand factors and as such the cost of fuel fluctuates daily. In the past three years alone the ‘price of petrol has risen 16% and the price of diesel 19%’. According the RACs report this is ‘having an adverse effect on 77% of drivers who say they are struggling to make ends meet.’

The report findings state that it is those living in rural areas who are ‘hit the hardest’ with 38% stating that this is their ‘most pressing fear’. Set against 28% who live in city areas; this may be due to the increased need to travel for people living in rural areas.

Since the RAC conducted its first annual report in 1989 the fuel prices have increased a shocking 264%. At this time (1989) petrol was 38.5p per litre and diesel 36.1 per litre, it is now 134.2p a litre for petrol and 138.9p for diesel.

Insurance Costs

Fourth on the list of drivers worries for 2013 is the cost of insurance, with ‘a third (35%) apprehensive about the rising cost of premiums.’

Insurance is mostly a concern for younger drivers with 20% of 17 to 24 years olds finding the cost of insuring their vehicle is actually prohibiting them from driving. There has been added controversy to ‘young persons’ car insurance, as last year the EU Gender Directive stated that the prices charged by insurance companies could not be determined by gender. This pushed up the premiums for many young women drivers, who are seen as a lower risk than males.

Location also plays a part in insurance costs with city dwellers having to pay a higher premium than most country counter parts.

Tax Costs

The RACs 2013 found that 19% of drivers don’t understand the ‘different elements that make up motoring taxation’.

Following this confusion, drivers don’t believe that the taxes raised via motoring taxation are put to use sufficiently, i.e. improving local roads. This has raised the issue of how road taxes should be raised, with almost a third of drivers (31%) supporting the raising of road funds through more toll roads.

‘Three quarters would prefer to pay less fuel tax and half would like to pay lower levels of car tax.’ Drivers are also in favour of drivers of vehicles omitting more pollution paying high tax and 29% support motor way toll fees and 33% support charges to enter city centres in a vehicle.

This is showing that motorist would like to pay taxes in areas where they have more control; whether they choose to drive a larger vehicle or enter the city centre.

What are the Government doing to combat the rising cost of driving?

Following pressure from the RAC and FairFuelUK the Government has frozen fuel duty prices (for now). The Government is also looking at plans to make the cost of fuel at motorway service stations more transparent, by having to display their prices to customers before they enter the forecourt.

Other methods of reducing the cost of driving (by the Government) is the reduced tax on ‘green cars’, rewarding drivers for choosing more economically friendly vehicles.

Schemes, such as ‘pass plus’, have been introduced to assist ‘learner drivers’ with the cost of insurance premiums.

What are drivers doing to combat the costs?

Many drivers are now choosing public transport over their own vehicle, it can be much more cost efficient and with improved public transport and ‘private lanes’ it is often a less stressful way to commute.

With online comparison sites for petrol stations and insurance companies, drivers are now becoming much savvier with the cost of driving.

Many businesses are choosing to open up fuel card accounts, like, helping to avoid the constant fluctuation of fuel prices.

To see a full copy of the RAC Report on Motoring 2013 click here.

Comments: 13

  1. Danial June 13, 2013 at 3:40 am

    I will kakinada from hyderabad on eighth in train ,but my PNR status was showing me RAC 132 presently?Will I Recieve My Birth Confirmed By eighth evening?

  2. Jaime July 12, 2013 at 7:21 am

    My insurance did cover breakdown save by RAC within my plan, but can’t appear to achieve the number just in case of the emergency? Now I’ve checked RAC websites also it states save only when I taken care of their plan? I’m unaware, must i buy £28 monthly cover individually to obtain saved just in case of the breakdown? Help?

  3. Arnulfo July 26, 2013 at 7:22 pm

    it’s something that you could either iron it on or sew it on. then after wards you set ric rac into it. what’s the iron/ sew factor known as

  4. Isidro July 28, 2013 at 7:26 am

    bonnet (Astra). The RAC guy pointed out obtaining the anti-freeze/coolant drained lower and changed with a garage. How necessary is that this task? Thank you.

  5. Yolando July 31, 2013 at 9:11 pm

    RAC: Reservation Against Cancellation

  6. Norbert August 11, 2013 at 2:02 pm

    i agreed using the RAC an excessive amount of £200 on my small policy, and that i designed a claim plus they say i must pay excess £500 to work through my vehicle, is that this practice permitted?

  7. Malcolm August 16, 2013 at 6:26 pm

    Left the automobile around the drive for several days. Then to uncover battery was completely flat, couldn’t even open the doorway. Known as RAC to uncover battery completely flat. The auto technician states the car’s software program didn’t shut lower correctly and for that reason draining battery.

    With no, I didn’t leave any electronic buttons or car headlights on after i locked the automobile.

    Took to some Ford dealer to be examined however they have discovered nothing and there’s no program update. Who’s correct? The RAC auto technician assured me that the Ford dealer can deal with it by installing an up-to-date program. Can anybody help?

  8. Cristobal September 22, 2013 at 10:03 pm

    I’ve been reading through with the solutions and I wish to find out if the majority of the solutions are gossips. Used to do my refund through H & R Block and did an immediate deposit. Used to do, however possess the costs removed of my refund coupled with it in in regards to a week. On my small documents it states RAC through direct deposit. But…I am confident my father made it happen exactly the same way Used to do and also got his rebate today. So, I’m wondering if anybody that made it happen exactly the same way has gotten anything via direct deposit? Thanks.

  9. Christian September 23, 2013 at 12:18 am

    i’ve purchased a W/L ticket 2 several weeks before, It is now in RAC. I love to put emergency quota. i wish to know can one confirm my RAC ticket in emergency quota.

  10. Sam November 2, 2013 at 3:39 pm

    Stupid question maybe but when you living on nothing but have handled to purchase an ultra cheap £300 vehicle (with a few tax and mot) and insurance etc well should you breakdown you’re pretty stuffed right, even when you’ve RAC / AA then you definitely should you could not afford a garage bill then no reason, and so i guess just don’t operate a vehicle unless of course you’ve enough to pay for a failure, anybody been in cases like this would your vehicle just get towed away and you’d be penalized?

  11. Antonio November 11, 2013 at 8:58 am

    I done a rac refund and was told i’d get my refund on 1/28/11 however the wmr website say i ought to recieve it by 2/8/11 because of a processing delay then when must i get my refund?

  12. Henry December 11, 2013 at 2:11 pm

    The RAC individuals who come and repair your vehicle if you have divided what wage will they begin ? (United kingdom)

  13. Hans December 14, 2013 at 11:05 am

    We filed our taxes with jackson hewitt, but we didn’t obtain a ral or rac we anxiously waited the fourteen days and also got a AF, does which means that we are getting our rebate submitted the mail????

    If anybody knows please tell me

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