Increased UK Fuel Prices are Driving Businesses to Complain

The Federation of Small Businesses (FSB) have added their voice to the growing chorus of frustration over the recent hike in fuel prices.

In the last month or drivers have seen the cost of unleaded and diesel fuel jump by as much as 10p per litre. That's a lot if you're filling a up an 80 litre tank two or three times a week, which some do. The hike is down to a combination of oil price rises, a fuel duty increase on 1 January and the new 20% VAT rate that arrived on 4 January.

The FSB have reminded the British government of their commitment to introduce a fuel price stabiliser. Quite how it would work has not been spelled out, but in essence the duty would reduce or increase to balance the impact of VAT on oil price fluctuations.

The FSB also point out that in the UK of every one pound spent on fuel, 62p goes to the tax man and only 38p is kept by the supplier. That makes the UK's network of filling stations a massive tax collecting operation.

While other European nations do the same thing, the rate of tax they charge is less. On average for every Euro spent on fuel on the continent, just over half is kept by the supplier with the balance going to the state in taxes.

According to the FSB taxi drivers and hauliers will be 'severely affected' and the increases in fuel costs 'are placing a straing on already hard-hit businesses cash flow'.

Unfortunately, speaking to the BBC this weekend Prime Minister David Cameron has warned that the fuel price stabiliser is a 'difficult issue' and he doesn't 'want to raise people's hopes too far'. That's despite the Conservatives having initially proposed the measure back in 2008.

Economic recovery will, inevitably, push fuel prices even higher as demand for oil increases. This is an issue that won't be going away.

10 Fuel Saving Tips

The price of oil is going up again.

It's risen by 77% in 2009. This week the International Energy Agency announced that this increase "risks derailing the recovery".

Higher fuel prices aren't good news for the thousands of businesses in the UK who run vehicles, or the millions of commuters who fill up weekly. For employees enduring pay freezes or pay cuts a hefty increase in travel costs is unwelcome. But it's happening right now.

There's no easy answer to the problem of increasing fuel costs. But here are some fuel saving tips:

1. Drive more slowly - yes, it'll take longer to get there. But drive at 65mph rather than 75mph on the motorway and you'll save 40p per 10 miles, according to the RAC. It'll add up during the week.
2. Gentle foot action - on the accelerator and the brake. Sudden braking or acceleration pushes up consumption and increases wear and tear.
3. Close the windows - it will improve the aerodynamics and improve fuel efficiency. You'll stay warmer as well.
4. Keep air-con off - it's another fuel-gobbler you can live without during the winter.
5. Lighten the load - the heavier your car, the more fuel you use. How much stuff are you paying to transport from home to work and back again, without using it?
6. Get the pressure right - the RAC say that using tyres at the correct pressure could improve your fuel efficiency by 2%. Not a lot, but look after the pennies and the pounds look after themselves, as they say.
7. Don't be idle - if you're stationary and the engine's running for more than a minute you're wasting fuel.
8. Avoid the queues - easier said than done for many commuters, but it's a way to cut costs. Is there a way to flex your day so you can travel when others aren't?
9. Regular servicing - keep the engine running at optimum efficiency.
10. Use money-off tokens wisely - the supermarkets often give token to customers, valid for a week or two. Plan your fill-ups to get the best value. Find friends with spare tokens, or share yours.

If you come across any more fuel saving tips please leave a comment or get in touch.