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Back to SOCIAL/ECONOMIC/POLITICAL Homepage

Petrol at the village garage
approaches £1 per litre

Editorial

Filed 11 Sep 05
©www.land-care.org.uk

In the UK the cost of petrol and of diesel is escalating. The situation may well get worse in the wake of the Hurricane Katrina disaster in the Gulf of Mexico, when oil refineries were severely disabled.

In rural communities a car is essential simply to get about. Public transport is highly inefficient, and always will be, on account of the relatively small population in rural communities and the distances involved. When buses and trains do run, its is from villages and townships to cities: not between villages or townships, unless they happen to be on such a route. Even when such buses and trains do run, the overall time to get from a rural place of business or home to a town is likely to take inordinately long. And how are you supposed to carry the goods that you want to sell or purchase? And what if the nearest bus stop or station is a few or many miles away?

The cost of petrol & diesel at Comrie garage
Perthshire on 12th September 2005
(to enlarge: Click Here)
photo ©Kimpton Graphics

The fuel companies charge extra in rural areas as they pass on the cost of delivery according to the distance from their depots or refineries.

But it is not just the cost of running a car that is rising. Escalating fuel prices affect the cost of getting any and all goods to rural areas, and to towns and cities. Hauliers are having great difficulty in passing on the increased fuel charges to their customers. In the UK, hauliers are already suffering much higher road tax charges than their European counterparts. It is therefore hardly surprising that the hauliers are greatly concerned by the situation.

While most people are adversely affected by rising petrol and diesel charges, the worst affected are those who work and live in rural areas - as opposed to those using the countryside as a dormitory, retirement base or as a playground.

The winners are the oil companies with their huge profits and the Chancellor of the Exchequer, who currently receives some 65% of the fuel price in tax.

It was highly disingenuous of the Chancellor, Gordon Brown, to be publicly stating that the answer was not a reduction in tax, but that the oil companies should produce more oil and have more refineries. He knows, as well as anyone, that to produce more oil and to create more oil refineries must necessarily take years, even if the red tape that the government puts in the way were to be reduced.

The Chancellor's priorities clearly do not include the rural economy. It could be that he is again placing disproportionate emphasis on reducing carbon emissions by facilitating the reduction in the consumption of oil, while damaging the economy in the process. Or it could be that he is desperate to get more moneys into his kitty, as the economy becomes increasingly shaky with ever more dependence on the service industry.

But cast a glance across the Channel. The French take much more interest in their rural economy and their hauliers. The French have already devised ways of reducing the burden on those who are most vulnerable to increased oil prices. Gordon Brown says he is not going to do so. If felt necessary, he says that the government will introduce a form of fuel rationing, and that any protests leading to obstruction at refineries by hauliers or farmers who feel that their livelihoods are threatened will be broken up.

©www.land-care.org.uk

Recommended further reading

Irvine, James (2005). Director of National Institute of Economic and Social Research says that "The UK would be better off without farming" and that "Farmers get paid for nothing".
SEE SOCIAL/ECONOMIC/POLITICAL Homepage, filed 05 Jun 05, www.land-care.org.uk Click Here to View

Finis