MONEY COMMENT
Beat Higher Petrol Prices!

By Cliff D'Arcy
May 10, 2004

Even if you have absolutely no interest in world commodity prices, you can't have failed to notice changing oil prices over the last year. High US demand, coupled with continued uncertainty in Iraq and the rest of the Middle East, plus a weak US dollar, has sent the price of oil soaring, especially in recent weeks.

In fact, over the last two years, the price of crude oil (which is measured in US dollars) has soared from roughly $18 to almost $40. That's an increase of 122%, which means that oil is the most expensive it's been for thirteen years. Wow!

Meanwhile, petrol prices have been on the increase too, although at nothing like the rate that the crude price has been rising. That's because around three-quarters of the price we pay for petrol relates to tax (a combination of fuel duty and VAT). One survey claims that the average price of unleaded petrol now stands at 80.2p, with diesel coming in at 81.3p. With another round of fuel-tax rises scheduled for the autumn, including 1.92p on a litre of diesel, motorists and lorry drivers are going to have to tighten their belts. The AA Petrolbusters site is a useful way of finding the cheapest fuel in your area.

However, given that the average UK driver uses roughly 1,309 litres (288 gallons) of fuel per year, a 1p-a-litre increase amounts to a mere £13 a year. Therefore, a hike of even 5p a litre means a typical driver only needs to find an extra £65 a year - but professional drivers, salesmen and so on will be far worse off.

So, without further ado, check out these three articles for dozens of tips on cutting the cost of motoring:

• Bargain Home And Motor Insurance
• More Car For Less Cash
• Terrific Tips For Motorists!