UK drivers whose income has been squeezed by the credit crisis and the recession are buying less petrol, according to a recent report from the AA.
In the first half of 2011, the amount of petrol consumed by British drivers has fallen. Drivers used 1.7 billion less litres of petrol and diesel than was consumed in the first half of 2008. This represents a 15% reduction in petrol consumption following the credit crunch and recession.
Environmental campaigners have welcomed the news. It is estimated that the reduction in fuel consumption will have saved approximately 4 tonnes of CO2 emissions from exhaust fumes.
This is the equivalent to the amount of CO2 which 0.5% of the total number of broadleaf trees in the UK are able to absorb in their lifetime.
A spokesperson for Friends of the Earth has suggested that the high price of petrol and diesel is forcing consumers to change their travel habits. More people are now cycling, walking and car sharing, which is positive for the environment.
The AA have suggested that the high price of petrol and diesel sales is directly responsible for the drop in the amount consumed. They also point to the recession as having a strong impact on consumption as British people struggle to make ends meet. A recent survey conducted by the AA suggested that 76% of its members were driving less.
For the first six months of 2011, the average cost of petrol has been at a record high of 133.13 pence per litre. In 2008 for the same period, the price was 109 pence per litre.
Edmund King, the president of the AA, said: “There is no downplaying the impact of record fuel prices on families and other people’s lives. A 1.7 billion litre drop in petrol sales says just one thing; too many car owners cannot afford these record prices.”
The AA have also indicated that the reduction in fuel consumption has cost the government approximately £1 billion in fuel duty between the months of January and June for this year alone.
Another spokesperson for the AA suggested that many businesses have faced the dual impact of consumers having to spend extra money on petrol that would otherwise be available to spend in shops, and at the same time, the costs of transporting goods has risen due to high petrol prices. Many businesses have had to reign in their spending on petrol consumption in order to cope.
Tesco have also recently reported that high petrol prices have impacted on what people can buy this year. At the same time, many petrol stations are going out of business as supermarkets aim to attract drivers who are looking for bargain fuel prices.
A spokesperson from the UK Petroleum Industry Association has agreed that there has been a fall in petrol consumption. However, they argue that it it difficult to ascertain whether this is mainly due to the price of petrol or the recession.