Households 'squeezed' by expensive petrol
Date: 12/03/2008 12:00:00
British households' finances are falling under increasing pressure as a result of rising fuel prices, it has been claimed.
According to research by the RAC Foundation, fuel duty increases are leading to tighter purse strings for rural households, working age couples, the traditional family unit, retired couples and single person households in particular - including car insurance holders.
While 16 per cent of a household's spending is on transport, 88 per cent of this goes towards private motoring, the study also found. Meanwhile, the purchase of fuel soaks up four per cent of households' finances - the second biggest expense after housing costs.
"UK households are under increased financial pressure as energy and other household bills are at an all-time high," commented Sheila Rainger, acting director of the RAC Foundation.
"Fuel should not be priced as a luxury or be considered an undesirable purchase, as car travel is essential and in many instances the only way for people to get to employment, education and health services."
The research comes ahead of the first Budget for chancellor Alistair Darling, who is expected to reveal increases for taxes on the most polluting vehicles today (March 12th).
However, it is believed that Mr Darling intends to postpone a 2p increase in fuel duty as a result of the rising price of crude oil.