By Michael Smith (Veshengro)
According to the AA gasoline and diesel sales have dropped in the first half of 2011
As a result of the ongoing recession – something that the British Prime Minister David Cameron only seems to have just noticed; the ongoing recession that is – and the rising fuel prices motorists have cut back on driving and thus on fuel purchases.
This reduction in motor vehicle usage has become also evident by the number of “new” cyclists that can be seen on the roads.
Cycle sales, according to industry sources, and we should assume that that is only the sales in new bicycles, are very much on the up. In addition to that it can be safely assumed that many an old bicycle is being brought back into use, among them many that have been languishing unused for years at the back of the garage or shed.
Petroleum-based fuel, whether gasoline or diesel, will continue to rise in price and that despite dropping demand simply because of the fact that cheap oil is history very soon. According to sources last year the world used 40% more oil than was being produced worldwide and that does not compute in the long run.
The drop in sales, to the tune of around 517 million liters of fuel, deprived the British Treasury of an estimated £985 million in lost revenue from fuel duty. This also shows how much duty is on each and every liter of fuel in the UK. (The figures are from the AA so please don't blame me).
The cost of gasoline and diesel surged in the first half of 2011 as volatility in North Africa and the Middle East threatened oil supplies and forced up prices. Global recession fears, however, have seen the price of oil come a little off the boil. The fact that the USA and others have brought strategic reserves on stream to bring down prices at the pumps more than likely also has something to do with this small drop.
Not that any of the reduction in the wholesale price of oil and gas filters down much to the consumer, whether motorist or householder. The latter have only just now, in the beginning of October 2011, received notification from the energy suppliers that the prices for electricity and gas for cooking and heating are going to rise by a fair amount and well above any rate of inflation.
While the motorist can chose not to drive that much and switch to using, where appropriate and possible, a bicycle for commuting or going to the shops, or carpooling to work, the householder has no such choice as to reduce consumption; not much at least.
© 2011
