DIESEL RIP-OFF?
I don’t usually get involved in trade politics outside of Dial-a-Cab - other than the odd nuclear bomb or curry row - because we have trade representatives who are far more capable than I of putting forward our point of view. However, I am worried about the escalating price of diesel. A pattern seems to be evolving that suggests the fuel companies could be taking us to the cleaners!
Bearing in mind that oil prices have been at rock-bottom prices, that the Arab oil producing countries have long forgotten their unofficial ‘rationing’ system that was keeping the price of crude artificially high and are now pumping as much as we can use, it just doesn’t make sense for the price of a gallon at the pump to be so high.
During the Gulf war, it was a hardship to pay so much yet to get so little derv, but at least the reason was visible. Is there any other industry where a glut produces higher prices? I think not. The emerging pattern seems to consist of a sizeable jump in the pump price followed by the usual moans, soon followed by a one pee reduction but leaving the price substantially higher than it was. This happens far too frequently to be sheer coincidence.
I telephoned the press office of one of the major oil companies to ask for a good reason why prices are so high; the old chestnut of the majority of the price going to the Government in taxes was trotted out. And, of course, we know that the Government take liberties with motorists.
"So" I asked, "are you saying that every fuel increase has been Government inspired?"
With my admiration for his boldness, the spokesman coolly told me that additional increases other than for fuel duty came because of market forces! In other words, if you don’t like it - go elsewhere! But where CAN you go?
Did you notice in early October the price at EVERY pump
showed the same litre cost - 65.9? Coincidence? I don’t think so. Something was
going on behind the scenes and it certainly wasn’t going to be to our advantage. So
what was the result? Well, Esso - who when discontinuing their Tiger Tokens promotion
promised no more offers, just low prices - suddenly started to give money-off coupons when
you spent £15. But their pump price didn’t drop. Is that a promotion or is my age
catching up to me!
My suspicions are that when the 65.9p per litre pump price was showing everywhere,
meetings between rival companies were taking place. Cartels are illegal, so where do you
think we are now? And anyone who believes that we get any fuel increase money back with
our fare increases is dreaming.
AND ROAD TAX TOO…?
"We’ve got ‘em at the pumps - how else can we get more money
from the motorist?" asks Chancellor Gordon Brown. And now he has come up with the
answer. As of next April, Road Tax will be charged according to your vehicles engine size
rather than the general vehicle classification as it is now. And why? Well, HM Government
are attempting to convince the world that they are trying to protect us from our own folly
and that smaller engined vehicles create less environmental pollution than the huge gas
guzzlers that some nasty people are driving around in. Plans leaked recently suggest that
if you own a car of anything
under 1100cc then your road tax will drop from £150 to
£100. It looks as though 1300cc users will pay about the same and that everyone using a
bigger engine is destroying the world and will be punished by paying a higher excise duty.
So where does that leave taxis? I don’t think that there are many 1300cc taxis
flying around. !700 seems closer to the mark and that will probably represent a £50 hike
in payable duty.
"They will make exceptions for licensed taxis" I hear you say. Just like
they make exceptions during normal road tax budget hikes? Do you remember when we paid a
token amount for road tax that represented half that paid by cars? The tax disk on a
London taxi has increased in price more than any car, so don’t expect any favours -
and don’t say you haven’t been warned.
And by the way, do I not remember reading some time ago that Premier Tony Blair has
bought a nice little economical Chrysler Grand Voyager - a car reputed to weigh almost two
tons with a thirsty 3.3 litre engine and top speed of 110 mph? Is that the secret answer
to saving the planet? All I can say to Mr Blair is that it’s lucky that Cherie works
because he is going to need the money…
AGM
I’m looking forward to seeing you all at the AGM. My fervent wish is
that with our excellent record profits - and they are something to be proud of - our
refreshment break will provide more than just the odd tea finger!
