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Petrol Prices and New Car Tax Rates DRIVING IS SUDDENLY TOO EXPENSIVE Leave aside a decent earning UK resident, even the richer will now have to think twice, before switching on the car’s ignition. UK petrol prices are on the verge of a sharp increase and the new car tax rates regime is anyways quite taxing. With these two mutual forces working in sync, no good news is in store for a UK car owner. For the privilege of un-informed, this write up highlights the situational analysis. While nothing much can be done at this time, these informational posts, might help plan a budget for the next few months. OPEC almost declares hike in petrol prices UK Though most of the leading newspapers have tried to soften the blow by presenting news with headlines like "OPEC warns of a sharp fuel hike or petrol prices might go up" or "Cheapest petrol price might soon fade away", but the fact remains eloquently clear. Petrol prices are at the threshold of significant increases. The costs are important numbers and numerically their impact on the expenditure side of budget, would be quite severe.

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It is not only for the car drivers to deal with the pain, even oil refiners and marketers will have to deal with the consequences. Prices per barrel are increasing and OPEC president is quite clear that the prices would not go down. He in fact, indicated that all has been to pass on the cheapest petrol prices. Wonder if this was a serious effort, how would an intentionally vague attempt look like? And it is not that our political managers are doing about it. Official communications with OPEC have focused on increasing oil supply and attaining the possible cheapest petrol price. But to this theory also, the OPEC has reverted by claiming that the supply is in abundance and price hike is a result of pure speculation. Well, whatever be the reason, one thing is clear. Petrol prices UK are all set to rise, with difficult implications in store.

New Car Tax Rates

New Car Tax Prices While on one hand petrol prices UK are terrifying, attempts to create greener cars are further adding on to the woes of helpless UK car owners. As per the car tax rates applicable from 13th March 2008 onwards, cars emitting higher levels of CO2 will now have to pay more. The new tax regime is applicable for the older vehicles as well. This section includes majority of cars, especially the ones figuring in low budget – big space family car category. And this explicitly implies that cheaper cars would no longer be cheaper. Thus for an average family man, it is now time to rethink the car purchase / maintenance policy, not based upon utility, but environmental concerns, even if that is killingly expensive.

Together both the above stated facts ensure expensive times ahead. Though nothing much can be done about the expected hike in petrol prices UK, government should perhaps actively look at the car tax prices side of the equation. A reconsideration on this accord, could offer at least some respite to the about to be empty pockets.

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