Fair Fuel Stabiliser - What Is It Exactly?

So, what is this new fuel pricing regime the government has come up with? Well here it is in a nutshell...

Under a Fair Fuel Stabiliser, when fuel prices go up, fuel duty would fall. And when fuel prices go down, fuel duty would rise.

This is a new way of setting fuel duty that will strengthen environmental signals when oil prices fall, and cushion the blow when fuel costs rise. Government will be sharing the pain when prices rise and sharing the gain when they fall.

If, for example, a Fair Fuel Stabiliser had been introduced at the 2008 Budget:

 Fuel would be 5p per litre cheaper.

 This would save up to £3.50 on each tank of fuel for a Ford Mondeo, or £2.60 for a Vauxhall Astra.

 If, instead of rising, oil prices had fallen below the $84 forecast in the Budget, then fuel duty would have risen. In either case forecast government revenues would have been unchanged.

If a Fair Fuel Stabiliser had been in operation over the last year:

 The average household would have saved more than £90 in fuel costs.

 Instead of being 3.3%, official CPI inflation would now be below 3%.

The Proposal

Under a Fair Fuel Stabiliser, when fuel prices go up, fuel duty would fall. And when fuel prices go down, fuel duty would rise. Government would save in the good times in order to help in the bad times. It’s a classic example of fixing the roof when the sun is shining.

The Fair Fuel Stabiliser would bring three key benefits as outlined in the Conservatives manifesto:

"1. It would increase the stability of family finances. Government would be helping when the cost of living was rising sharply, by setting aside money in good times to help in difficult times.

2. It would enhance economic stability by reducing the sensitivity of the public finances and inflation to unpredictable changes in oil prices.

3. It would provide greater certainty about the price of carbon, consistent with the principles outlined in the Stern Review."

So what do you think fo the proposed Fair Fuel Stabiliser?

Conservatives New Plans For Modern Motoring

Below is a list of promises the Conservatives made as part of their "Vote For Change" campaign regarding their proposed action on fixed speed cameras...

"We will stop central funding for new fixed speed cameras and focus on better ways to make our roads safe, including authorising 'drugalyser' testing technology.

"Road users have had a raw deal under Labour, so we will:

• Crack down on rogue clampers.
• Consult on our Fair Fuel Stabiliser.
• Give more powers to local councils to get traffic moving.
• Introduce a lorry road user charge, so foreign lorries pay their fair share of tax.
• Facilitate the switch to green cars by creating a national car recharging network.
• Crack down on road works, introducing lane rental for some of our busiest roads.

"We will free local transport funding from the requirement to introduce congestion charging and create a Transport Carbon Reduction Fund to support green projects such as initiatives to encourage walking, cycling and bus use or measures to help reduce the need for work-related travel - supported by our roll-out of fast broadband..."

If all of the above points were to be introduced today the future of motoring in Britain dosen't look so bad after all, however, the implementation of such things as we all know takes so long to actually do it'll be a wonder if we see a couple of these new schemes in place within the next few years.

Of all of the above pointers, one of the more likely to be carried out sooner than later, surprisingly, is the introduction of a national car recharging network. Due to the EU commission clamping down on emissions from all major manufacturers, by 2013 we are going to see the introduction of millions of electric cars on our roads whether the government likes it or not and so a stable recharging infrastructure is going to need to be in place sooner than later to both support the citizens driving the cars and the manufacturers making them.