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Pre-Budget Fuel Duty Set to Spark Economy Drive
Car hire/Public transport combo now being seen as solution to save money and support the environment
8 December 2006 –With the rise in fuel duty in the Chancellor’s pre-budget speech, the cost of owning and running a car has reached a new high, bringing into question the financial and environmental sense of owning a car compared to hiring one when needed and using public transport.
Insurance, rising road tax, breakdown cover, servicing, tyres, maintenance, MOT and depreciation – the cost of owning a car is hefty before fuel and environmental damage are even brought into the equation. The 1.25 pence per litre rise in fuel duty added by the Chancellor this week will put further pressure on car owners.
The car hire company Carrentals.co.uk has already seen a steady rise in weekend rentals in the UK over the last 12 months, and with the latest fuel hike is predicting that more drivers will reconsider the sense of owning a car full time.
Gareth Robinson of Carrentals.co.uk said: “This year we’ve seen increases in road tax, and now fuel duty, add to this the on-going maintenance of owning a car and financially it starts to be a real drain on families. In addition to the financial implications, the environmental damage is undisputed.
“The combination of cost and ‘going green’ means there has to be a compromise. For around £70 you can hire a car for a weekend if you want to go away, and through the week public transport can be a cheaper option. The result is less expense and a greener solution, but without losing the flexibility needed.”
According to figures from the AA the cost of running a car is at least £4,350 per year (based on a petrol car worth £10,000 - £13,000 at 10,000 miles a year), which would potentially buy car hire for every weekend throughout the year, or over 2,280 bus journeys (based on £1.90 fare).