via Auto Express.
Petrol and diesel sales are plummeting as a result of high prices, research from the AA shows. Sales of petrol fell by an incredible 186.5m litres in the first quarter of the year, compared to the same period in 2010. The AA puts the drop down to hard pressed motorists being driven off the road by record pump prices. And things just got worse in the second quarter, with sales crashing by a further 330.7m litres.
Although diesel sales were more resilient – dropping by 31.2million litres over the last six months compared to 2010 – the extent of falling sales is brought home by a comparison with pre-recession sales levels. Government figures show that between January and June this year, 1.7bn fewer litres of petrol and diesel were sold compared to the first half of 2008. That equates to £1bn in lost revenue for the treasury.
AA President Edmund King said: ‘There is no downplaying the impact of record fuel prices on family’s and other people’s lives. A 1.7bn-litre drop in petrol sales says just one thing – too many car owners cannot afford these record prices and are losing mobility as a consequence.
‘With petrol and diesel costing around 20p a litre more than a year ago, the Treasury faces an even bigger black hole opening up in its fuel duty receipts if the 3.02p-per-litre increase in fuel duty goes ahead next January. Oil and pump prices may be falling at the moment, but a return of confidence in the stock market will be reflected in yet another hike in commodity prices, as has been the case throughout this summer.’
How has the price of fuel affected you? Have you been forced to use your car less, or have you been forced to cut back in other areas to maintain your mobility?
[Source: Auto Express]