This winter petrol prices in the UK are set to soar as prices hit the highest levels for two years. The price increase is due to the sharp fall in sterling due to Britain voting to leave the European Union and also the Organisation of the Petroleum Exporting Countries (OPEC) choosing to limit the production of crude oil for the first time in almost a decade.
The price of crude has taken a sharp upturn this year, after a very poor spell in oil prices. The decision to cut output has been taken to stop the tumble in the prices. This can only be good news for electric car production. The technology has come on leaps and bounds over the last handful of years, with several major manufacturers sounding the death knell for diesel cars and moving research and development into producing the next generation of electric vehicles.
The push towards electric will also be helped by the plans of major cities around the world, such as Paris to ban diesel powered vehicles from their roads over the next decade. The cars are thought to be one of the worst polluters in existence, and it’s hoped that the strong development in electric cars means that within the next decade they will replace the economical but polluting vehicles.
But in the meantime it means a significant addition to bills in the UK. Petrol prices remained strong in the UK even when oil was at its lowest prices, with petrol retailers not passing on their significant savings to the motorists. It is widely anticipated that prices will once again exceed 120 pence per litre before the new year.
Once again the government will come under pressure to reduce its heavy taxation of fuels. Though the government will maintain that it has held its tax levels on fuel for several years, and that a reduction will not be possible. The advent of electric vehicles will also pose a challenge for the government, as currently these vehicles avoid road tax due to producing no pollution, and obviously they pay no tax at the pumps. It surely means that it’s only a matter of time until the government finds a way to extract pounds from the pockets of those with electric vehicles. But in the meantime electric car sales are certain to pick up as yet again motorists in the UK face the pinch at the pumps.
Joseph is a 34 year old freelance writer from London. He has a wide interest in politics and specialises in the subject. He's also a blog writer in his spare time.