Fuelling discontent
10 Aug 2010
In September 2000 the UK was hit by a series of fuel protests, which led to blockades of refineries and the subsequent closure of petrol stations. The popular perception was that this wave of civil disobedience caught the then Labour government and then Prime Minster Tony Blair on the hop.
The aim of the protests, to the extent that they had one over-riding aim, was to secure a reduction in the fuel-duty rate on petrol and diesel.
The Retail Motor Industry Independent Petrol Retailers Association (RMI Petrol) has warned that petrol prices could soar by as much as 8 per cent by the turn of 2011. According to the association, the expected price fluctuation was based on currency movements and world oil prices.
However, this, I expect, does not mean that motorists or businesses will be shrugging their shoulders and absolving the UK government of any blame in an unstable world oil market.
As RMI Petrol chairman Brian Madderson put it: ’We also need to remember that the [UK] coalition government did not cancel Labour’s Budget commitment to raising fuel duty by 1p a litre from 1 October [2010] and a further 0.76p from 1 January [2011], with both having VAT added. Then we have the coalition’s emergency Budget proposal to increase VAT to 20 per cent from 4 January [2011], so the outlook remains extremely difficult for motorists and retailers alike. As I forecast earlier this summer, we could be seeing new record pump prices within six months.’
It should be remembered that the UK is a more toxic political environment than in 2000. There is likely to be mass protests once the government’s Budget cuts take hold and already there has been an increase in industrial action. Potentially, a movement around fuel protests would have a much deeper well (excuse the pun) of general discontent to draw on than in 2000.
Add to this the fact that hikes in fuel prices would affect the vast majority of households in the UK and one can see (excuse the very poor pun) what an explosive issue this could turn out to be.
Lyndon White
Editor, Processingtalk
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