The huge gap in public finances will come from increasing use of more fuel-efficient cars and electric vehicles, the RAC has said.

It added that while the fuel duty collected by the Exchequer stands at 1.7% of gross domestic product (GDP), this rate will tumble to 1.1% of GDP by 2029.

The report says that vehicle excise duty (VED) would also drop over this period, from 0.4% of GDP to 0.1%, with the combined fall leading to the £13 billion shortfall.

RAC Foundation director Professor Stephen Glaister said: “If the Chancellor was faced with a £13bn shortfall in motoring tax revenue today, he would need to push the rate of fuel duty up from 58p per litre to 87p per litre to fill the financial black hole.

“Clearly there is no guarantee that future rises in duty rates will be limited to inflation, as is current policy.”

He added: “As drivers endure record prices at the pumps they might be surprised to learn that future governments face a drought in motoring tax income.

“The irony is that while ministers encourage us to buy greener, leaner cars, they are being forced to look at ways of clawing back the money motorists think they will be saving. This isn’t scaremongering. The Treasury has already announced a review of VED bands to ensure drivers make a fair contribution to the public finances even as cars become more fuel-efficient.”

The report was prepared for the RAC Foundation by the Institute for Fiscal Studies.

Institute director Paul Johnson said motoring taxation did not reflect the costs drivers impose on others and that revenue from petrol was set to fall.

He added: “A national system of charging related to mileage and congestion, largely replacing the current system of fuel taxation, would help solve both those problems.”

In other Fuel Card news, Supermarkets are in a petrol pump price war

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Visit www.forecourtfuels.co.uk for more information.

It means that motorists filling up at any of its forecourts will pay no more than 134.7p for petrol and 139.7p for diesel.

Sainsbury’s, Morrisons and Tesco all announced they would be cutting fuel prices similarly as a result.

All three retail giants use regional pricing policies to determine what they charge based on geographical location and competition, that means drivers in different parts of the country are not necessarily paying the same price for exactly the same product.

Today’s reduction represents the first time since late February that diesel prices across the province have fallen below the 140p-a-litre mark.

The AA last night said that the wholesale price of petrol has dropped by 10p-a-litre across Europe since the record highs of mid-April.

AA President Edmund King said: “It took 12 days for the peak European wholesale price to be reflected in a new record for petrol prices in the UK.

“It shouldn’t take much longer for dramatic falls in the cost of fuel to be reflected at the pumps.”

In other news,  Trading Standards Check Petrol Pumps,

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Officers have launched a new scheme in Cumbria involving 40 independent petrol retailers.

Regular and unscheduled accuracy tests on fuel pumps have been taking place across the county to make sure they are delivering the correct amount and charging the right price.

Recent months have seen the cost of fuel reach record levels and in certain rural areas of Cumbria petrol and diesel prices are higher than the national average.

Motoring costs make up a significant proportion of household expenditure and along with rising prices for other consumer goods and services, trading standards say it is more important than ever that consumers receive a fair deal.

So far Trading Standards have tested pumps at 38 sites and discrepancies have been found at four sites.

Pumps that are inaccurate are taken out of use until repaired and verified.

Those that pass get stickers placed next to the fuel counter so that motorists can easily see it.

Motorists spend a lot of money on fuel each year and with prices at record levels it’s more important than ever that they are receiving the correct measure.

Many drivers don’t realise that fuel pumps are regularly tested by Trading Standards and they encourage motorists to look out for the stickers.

Testing fuel pumps is one of the many duties undertaken by Trading Standards to ensure consumers and businesses receive value for money.

In other news, FTA publishes its 17th European Road Transport Guide

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With its updated country sections the new guide uses regional profiles to equip transport managers with the information needed to avoid delays and deal effectively with roadside enforcement, often one of the terrors of overseas haulage. Amended information on public holidays, weekend lorry bans, toll prices and other essential facts for fleet operators in both the own account and hire and reward sectors are included and this year Liechtenstein and Monaco have been added to the list of countries covered.

There have been numerous other detailed changes throughout the guide, notably affecting the Netherlands, Estonia and Poland, with some of the information provided by FTA members. There is an update on the UK Border Agency’s haulier accreditation scheme and a section to assist operators in retrieving a vehicle if it is impounded by UKBA officials plus French contacts to assist with French exemption permits for banned truck movements. Also included is information on HM Revenue & Customs’ treatment of freight moving to the Channel Islands and indications of ferry transit times. Don Armour, FTA’s International Manager and editor of the guide, said:

“FTA members operating vehicles abroad often pass information on to us from their own first-hand experience. As with any reference work the details given may become out of date over time, so comments or amendments from those who are actually on the road play an important part in making sure that the guide is always as up-to-date and relevant as possible.”

You can get a copy by clicking This Link

In Other News,  Transport minister imposes tougher fines for utility companies

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All utility companies that dig up streets and roads must agree a fixed time line for their works with local councils. If works continue over this period and it has not negotiated with the local council then they face a ‘penalty charge’ for each additional the road works that are still there.

At the moment, the maximum daily penalty charge is £2,500. From 1st October 2012 this will rise on the busiest roads to £5,000 a day for the first three days, rising to £10,000 a day from the fourth day onward. Councils have been told to spend overrun charge income on implementing transport policies.

Norman Baker said: “We know that utility firms need to dig up the road to maintain the infrastructure we all rely upon but sometimes this work takes far too long to complete, causing disruption and frustration for everyone using the road.

“Increasing these charges means that utilities will pay penalties which reflect the cost of the disruption suffered when works go on longer than they should.

“The increases will also provide an incentive for utilities to finish works on time and prevent people sitting in unnecessary traffic jams in the first place.”

Regulations will be laid in Parliament shortly and are due to come in to force in October 2012.

The Government has also recently put forward proposals for councils to use lane rental schemes which would mean utilities pay a daily charge to do works on the busiest roads as well as measures to reduce red tape for councils wanting to implement road works permit schemes. Both consultations can be found on the Department’s website.

In other news, Fleet driver fatigue and accidents can be averted with new technology

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Using intelligent sensor technology, driver assistance systems consistetly monitor the vehicle surroundings as well as the driving behaviour to detect potentially dangerous situations at an early stage. In critical driving situations, these systems warn, notify the driver and, if necessary, intervene automatically in an effort to avoid an accident.

Monotonous driving, like on motorways, is exhausting and quickly leads to loss of concentration. Based on steering-angle data, the function Driver Drowsiness Detection continuously analyzes the steering behaviour of the driver to identify phases during which the driver does not steer for a brief period and then makes an abrupt correction – often a sign of failing concentration and arising tiredness. The function combines the frequency and strength of these reactions with other data such as vehicle speed, time of day and use of other indicators to calculate a tiredness index. If this index exceeds a specific value, a visual and/or audible signal can warn the driver of becoming tired reminding her/him of the danger of nodding off at the wheel.

As well as warning the driver, data concerning the tiredness of the driver can be used by other systems in the vehicle. In combination with a navigation system, for example, it is possible to display the next available opportunity to stop or take a rest break.

In other Forecourt Fuels news, Europe’s biggest fleet company Addison Lee loses contract to drive ministers after London bus lane row.

Did you know we can save you a guaranteed 3 pence per litre on diesel pump prices when using one of our fuel cards?  

Visit www.forecourtfuels.co.uk for more information.

From Tomorrow, Addison Lee cars will no longer be used by ministers and civil servants following company chairman John Griffin’s advice to his drivers earlier this month to use London bus lanes illegally.

John Collington, the Government official in charge of all contracts, said: “We expect all private hire vehicles in London to adhere to the prohibition on using bus lanes. In regard to Addison Lee, the only existing Government contract with the company will expire at the end of this month and is not being renewed.”

Mr Williamson had written to the Cabinet Office to ask whether the use of bus lanes and Mr Griffin’s comments on cyclists met its rules on procurement. Mr Griffin last week said that cyclists should have training and claimed they had a “gung-ho, holier than thou” attitude. Mr Williamson told the Standard: “I was concerned that this company was talking about breaking the law. I don’t think if a company is breaking the law it should be allowed to have a Government contract.”

A Cabinet Office spokesman said the Addison Lee deal was coming to an end because all contracts were being handled by the Government Procurement Service to achieve greater efficiency across Whitehall. Addison Lee drivers have been fined on 60 occasions since being told to use bus lanes.

Parliamentary records show that several government departments, including health, education, work and pensions, the Foreign Office and the Cabinet Office have contracts with the firm and ran up a bill of over £263,661 between May and December.

Earlier this month, former deputy prime minister John Prescott called for the Government to cancel its contracts with the company after Mr Griffin was revealed to be a Tory donor.

The firm is the largest minicab company in Europe with 3,700 vehicles, was yesterday ordered by the High Court to stop encouraging its drivers to break the law. A full court hearing is expected before the Olympic Games on its bid to gain equal rights with black taxis — opening the door for all 60,000 minicabs working in London.

In other news, read How rising prices are affecting Business Fleet Drivers

www.forecourtfuels.co.uk can show you the best deals based on your individual requirements, from your estimated fuel spend to the size of your fleet

The findings clearly show how fleet managers and drivers attitude towards fuel consumption has evolved sharply to accommodate the recent fuel price hikes.

With UK fuel prices at record highs, the survey highlights the changes that UK business drivers have made to reduce their overall spend on fuel.

The survey found that out of the UK business drivers we asked, 50% shop around for the cheapest fuel prices, 20% reduce their driving miles and 65% have adopted economy driving as a way of containing such hikes. 85% of Delivery drivers are now making sure that their vehicles are making the most out of every delivery and filling their vehicles top capacity. The survey also showed a rise in the use of Fuel Cards that offer money off each gallon of fuel bought.

The results highlight a big shift in driver behavior to improve fuel consumption. Commenting on the survey results, Nick Staples, managing director of Forecourt Fuel Cards, said: ‘People have had to get organized in order to survive in the current climate of fuel price hikes. By using Forecourt Fuels fleet management fuel purchase reporting, fleet managers are able to collect concrete data and implement changes that will have a major impact on reducing fuel expenses. We also offer an exclusive invitation to take advantage of our unique 3 Pence Per Litre price guarantee, you can now ensure that you pay a competitive, commercial rate for your diesel week in, week out thus eliminating the monotonous chore of having to shop around for the best rate and the lowest pump prices week in week out.’

In other news, Volkswagen release emissions guide for Fleet Managers

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Volkswagen’s first fleet price guide based on CO2 emissions was launched in 2009, detailing all the cars in the company’s range with a carbon dioxide output of under 160 g/km. It included information on P11D values and corresponding Benefit in Kind tax implications and proved a useful tool for fleet managers designing choice lists based on emissions, as well as drivers keen to select an appropriate vehicle for their requirements and budget. It was later supplemented by a sub-120g/km version.

This new sub-140g/km price list details all the cars with emissions of 140g/km and below, including the efficient TSI and TDI diesel engines, along with the company’s range of vehicles with BlueMotion and BlueMotion Technologies modifications, and is designed to have all the right information to hand in one easy-to-view tool.

Volkswagen Fleet Services’ Communications manager, Tracey Rossetti, commented: ‘We had a very positive response to the first emissions guide we published and so have decided to develop it further and introduce the new version with sub-140 g/km vehicles.

‘Although all our fleet price lists contain this information, we believe this makes people’s lives and vehicle selections easier – as the information is contained in one easy to use guide – and that’s important to busy fleet managers and drivers.’

View Volkswagen’s emission reports by clicking this link

In other news, Unite asks for a re-ballott.

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The talks follow an agreement by five companies involved in the dispute to extend the union’s ballot mandate until Tuesday April 24. The agreement lifts the need for Unite to give seven days’ notice of a limited one-hour stoppage today. All six employers will be involved in the talks.

The re-ballot came as concerns were raised that a number of members did not receive ballot papers. The union will be balloting members who deliver fuel for Shell and Esso from 26 April to 8 May.

The Hoyer tanker drivers had voted 59.7% in favour of strikes on a turnout of almost 80% in the previous ballot.

Unite assistant general secretary Diana Holland said: “We remain committed to reaching a negotiated settlement with Hoyer and the other employers that brings stability and security to the supply of a vital commodity.

“It has come to our attention that a number of people did not receive ballot papers. This is a concern because we believe that everyone should have a say. We will be seeking a fresh mandate from our members in Hoyer who – like all tanker drivers – face a race to the bottom in an increasingly fragmented industry.”

In other news, the IAM is urging drivers to improve their awareness of vulnerable road users.

Achieve added control over your fuel purchases. www.forecourtfuels.co.uk will help you to manage your account and transactions for optimum efficiency and convenience.