Rising Fuel Prices

Date 15 March 2006

• Rising fuel prices have meant one-third of drivers (36%) have cut back on journeys
• More than a quarter (28%) of motorists blame UK tax for rising fuel prices
• A rise to just 100p a litre would drive more motorists off the road
• 16% would consider an electric or hybrid vehicle if fuel prices continue to rise

The escalating price of fuel has led to a third (11.5 million) of British motorists cutting back on road journeys over the last 12 months, either using their car for essential journeys only or increasing their use of public transport, according to research by leading motor insurer, MORE TH>N (1).

Eight out of ten motorists have expressed concern over fluctuating fuel prices, as the going rate for fuel today costs on average 90 pence per litre, an increase of 11% over the last 12 months(2). In ....cont/

the last year, fuel prices have fluctuated from 80.5 pence up to 94.8 pence per litre. The research found that a further rise to just 100p a litre would be enough to make more than a fifth of all motorists (22%) think twice about using their car. Furthermore, a rise to 150p per litre would change the driving behaviour of nearly half of all motorists (42%).

Who do motorists hold responsible for high fuel prices?

Coming just one week before the Budget, the research among 1,500 British motorists reveals that more than a quarter (28%) believe UK tax to be most responsible for the recent increase in fuel prices, with a further 27% blaming oil companies.

Despite the likelihood of further price rises on the horizon, four out of ten motorists (39%) still feel that they have no choice but to use their vehicle just as much, regardless of ....cont/

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cost.

David Pitt, head of car insurance for MORE TH>N, comments: “Rising fuel prices are having a real impact on motorists’ behaviour, to the extent that a significant number have already cut back on the number of journeys they make. If prices continue to escalate, motorists will tighten their purse-strings even further and we will no doubt see more considering different means of transport.”

Green transport

If prices were to rise significantly, over a third of motorists said they would cycle or walk more short journeys and one in three (30%) would switch to public transport. A further one in six people (16%) would consider following the likes of eco-friendly celebrities Gwyneth Paltrow and Orlando Bloom by trading in their current vehicle for an electric or hybrid car.

Latest figures(3) show that registration of...cont/

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new hybrid vehicles in the UK increased by 74% over the year from 2004 to 2005. It is predicted that by the year 2020, there will be close to one billion hybrid vehicles on the road, worldwide.(4)

Public transport

Nearly two-thirds of motorists (62%) said that they would drive less if the quality of public transport improved, and more than half (55%) said that a reduction in the price of public transport would encourage them to leave their vehicle at home more often.

David Pitt concluded: “Given the growing concern over global warming, it’s encouraging that so many motorists are considering changing their driving habits. An increase in the use of public transport will help cut down congestion and improve overall road safety.”

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