ETA

Petrol prices are predicted to reach £1.12 per litre in May 2008; there is a six-week time lag between global crude prices, which touched record highs of nearly $120 per barrel this week, and pump prices.

With petrol prices predicted to rise to as high a level as £1.50 per litre by the end of the summer, a strong economic argument is being made for national road pricing according to the Environmental Transport Association.

A spokesperson for the ETA said: “The issue of national road pricing is being allowed to fester – governmental cold feet is denying drivers a system that would be cheaper for most people, fairer and more efficient.”

“Not only will road pricing cut congestion, it will save motorists money as there will no longer be any fuel duty or vehicle excise duty. Most roads most of the time have no congestion, so most people will either pay the same or pay less.”

At present, fuel duty makes up more than two thirds of the total cost of petrol. Britain charges about 120p per litre of diesel, compared with the European average of about half that. An additional 2p is due to be imposed in October.

Transport secretary, Ruth Kelly announced recently a further four years of funding for local road pricing pilot schemes, but made no mention of any plans for national road pricing, which last year prompted 1.8 million people to sign an online Downing Street petition opposing any such plan. The objections were based on ill-founded concerns about invasion of privacy.

Related articles:
How much road tax will you pay next year?
Record petrol prices as road tax doubles for some

The ETA is a not-for-profit ethical organisation providing motorists with carbon-neutral breakdown cover and insurance products. As well as encouraging responsible driving to reduce carbon, the ETA campaigns for sustainable transport.