Tinkering with pump prices is no solution

oilswellthatendswell.jpgAs I write, the wind and the rain is bashing against the window, yet another disgusting Bank Holiday! All I can think of is switching on the heating and watching TV, while reading the Sundays left over from yesterday, unfortunately the gloom and doom isn’t just outside, it’s also in the papers.Oil prices are hitting new highs, so what’s the Government doing about it? Tinkering with taxes is the answer. On Friday the Federation of Small Business (FSB) called on the chancellor to scrap the planned 2p rise in fuel duty after oil prices hit a record high.The AA accused market speculators of driving up the price of oil. “Oil prices have doubled since last year and this is not just due to strong demand from China and other nations,” said Edmund King, president of the AA.Chris Hannant, head of policy at the British Chambers of Commerce (BCC) , added that the high oil prices are pushing businesses to the ‘absolute edge’.“Sending a positive message to business would make a huge difference, and the government should start by announcing that they are scrapping the 2p hike in fuel duty,” he said.Tinkering with the prices and knocking off 2p, or 9p, or even 20p is not really going to make a huge difference. We just have to admit that that oil is running out and for the sake of the economy and business as we know it, we’re going to have to start finding some long-term alternatives that will replace oil. Oil underpins everything, it’s not only a means of heating our businesses, or producing electricity or transporting us from a-to-b, but it’s also the basic raw material for plastics and a million other things we use in everyday life.The AA, BCC and FSB, should start thinking about the long-term and not just the next six months. The current oil prices are undoubtedly a bubble that will burst, and prices will reduce, however, in six months time when the prices are lower it would be good if the AA, BCC and FSB were harassing the Government just as much about long-term solutions to oil, as they are about cutting a few pence off the oil prices.Image: Flickr

We use cookies to create the most secure and effective website possible for our customers. Full details can be found here