Budget is Fairly Good News For Drivers

The budget could have been worse, but maybe did not deliver everything that drivers were hoping for. The fuel duty was actually put down by 1p, in response to the complaints that the price was increasing so rapidly. In order to pay for this, the government have taxed oil companies more but insisted that they will not be allowed to pass on this tax to the customer.

It could have been a lot worse, but this is not really going to help drivers very much. Last year saw a reduction in demand at the pumps and with prices rising even more, even with the reduction in tax, it is likely that demand will fall even more. This is not good news for the oil companies as their profits will be down and with the additional tax burden they will find it tough indeed. Drivers may not feel much sympathy but in the end they will need to recoup those losses and so it is likely that sometime they will have to increase their prices to bring in more money, even if it is very subtle over a long number of years.

It seems like car drivers will just have to work hard on driving more efficiently to save fuel while driving and try to drive less, when they can. It will be tricky for those who have been used to using tehir car for everything but it is even worth calculating whether using public transport will be cheaper than driving.