The new 10 Downing Street policy unit is considering ways of bringing down costs at the stations – which average 7.5p higher than elsewhere for petrol and 8p for diesel.

The scheme is the first major idea from the unit since Boris Johnson’s brother Jo was brought in as its new chief.

Options now being considered include introducing a rule that prices have to be visible on the motorway, rather than just when drivers reach the forecourt.

Highways Agency signs showing distances to the next service station could be adapted to feature their current fuel rates.

Another possibility is to copy the French system, where stations are also required to publish prices at their two nearest rivals.

A Number 10 source said: “There is nothing more frustrating than pulling off the motorway to find a sky high petrol or diesel price.

“Giving people more information whilst they are still on the motorway will mean a greater choice about where they fill up, and should help drive down prices.

“We have acted already on energy prices, to ensure people get put on the lowest tariff, and we will look at other areas to see what more we can do.”

An Office of Fair Trading report earlier this year found motorway fuel prices, which currently only have to show their own prices, were far higher than other outlets.

Providers will not be forced to slash their prices under the changes but ministers believe greater transparency would encourage more fairness.

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Petrol would now be 13 pence per litre cheaper than it would have been had the duty not been frozen over the last two years, he said, the level of the now-scrapped increase had not been announced.

Fuel duty has not gone up since January 2011, when it was raised by 0.76p per litre.

It was then cut by 1p in March 2011 and, ever since, planned increases have been postponed repeatedly.

Consumer groups and industry bodies have welcomed the freeze. Both say higher fuel prices have curbed many people’s driving and hurt the economy.

“This news provides breathing space for families being smothered by the soaring costs of motoring, especially the 800,000 households spending more than a quarter of their income on operating a vehicle,” said Prof Stephen Glaister, director of the RAC Foundation. The AA’s Mr King said “76% of AA members are cutting back on journeys, household expenditure or both, due to the high cost of fuel”.

However, FairFuelUK spokesman Quentin Wilson said more should be done. “Cancelling a rise that really shouldn’t happen is not enough. The government needs to cut duty substantially to get the economic growth we all need.”

John Lewis, chief executive of the British Vehicle Rental and Leasing Association, said: “This is almost becoming a no-brainer. With the economy flirting with recession and household incomes still falling in relation to inflation, the government just cannot afford to price businesses and households off the road.”

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Research was presented to the treasury illustrating the impact of fuel duty on UK growth and the economy, amplifying the pressure on the government to axe the fuel duty hike scheduled for 1st January 2013. This information was presented in a face to face meeting organised by the FTA and the FairFuelUK Campaign.

James Hookham, FTA’s managing director – policy & communications said: “We have been able to get this issue to the heart of the political debate in Westminster and ensure the weight of public and business opinion is brought to bear on decisions about future tax rates. We hope and expect that George Osborne will not only cancel the increase, but will abandon any further rises before the next election, as it is clear that a precedent has been set and that similar debates and votes will take place ahead of all future planned increases. The Chancellor may as well give up on fuel duty increases as a bad job.”

In recent fuel saving news, Petrol Prices Down By Another 2p as supermarkets battle it out for Christmas trade

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Labour is to force a Commons vote on Monday that it hopes will lead to the postponement of a planned 3p per litre rise in fuel duty in January.

The Treasury said the postponement of earlier planned duty rises had already helped keep fuel costs down.

Writing on the PoliticsHome website, Mr Balls argued that a strong economic recovery was not yet secure and families and fleet businesses were still feeling the squeeze as well as the price of fuel affecting the economy.

Postponing the planned 3p rise until at least April could be paid for, he believes, by clamping down on tax avoidance schemes used by employment agencies.

The Government needs to act and clamp down on those avoiding paying their fair share of tax”

“There is a growing problem with some employment agencies forcing workers to become employees of an umbrella company,” he wrote.

“They then falsely inflate the worker’s travel and food expense claims, reducing tax and national insurance, and pocket the avoided tax as profits.

According to Mr Balls, “Even if only a proportion of that money was recouped it could pay for the fuel duty rise to be put off until next spring.”

Labour will use one of its allotted opposition day debates in the Commons to force the vote, which is non-binding.

Pressure group the Taxpayers’ Alliance launched a campaign earlier this year to have fuel duties frozen until 2015.

Another campaign group, FairFuelUK, claims that allowing the 3p tax rise to go ahead in January could lead to 35,000 job losses, and hit economic growth.

In recent petrol saving news, Supermarkets battle it out for Christmas trade

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It costs between £500 and £3,000 to fix a car  and only half of owners can claim the cost back on their insurance.

Industry experts believe the rising number of people switching to more economical diesel cars is to blame for the increasingly common mistake.

Rory Carlin from Halfords Autocentres,  which compiled the figures, said: ‘We saw a noticeable increase in mis-fuelling during  March and September – the peak months for  new-car purchase – which could be attributed  to new owners getting mixed up about Petrol and Diesel.

The AA runs a service for this kind of mistake in which they clean out fuel tanks of cars and get them running again. This service can cost upwards of £300 a time.

In May a bungling tanker driver left dozens of motorists stranded and caused thousands of pounds worth of damage to their cars after accidentally putting diesel into an unleaded storage tank.

The driver caused around £14,000 worth of damage after the mix-up at a Sainsbury’s petrol station forecourt in Salford, Manchester.

A total of 44 cars were affected – and owners faced bills of hundreds of pounds to get their engines fixed.

Bosses at the Regent Road store in Salford closed the pumps when they discovered the mix-up. By then, reports were coming in of cars conking-out on the streets.

Sainsbury’s apologised and agreed to cover the cost of repairs to the vehicles.

In Other News,Business are cutting spending on fleet fuel as prices continue to rise

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Business drivers are also taking measures to reduce costs, a separate ALD survey found.

In order to save fuel, over two-thirds were reducing speed and driving more smoothly. Half reported shopping around to find the cheapest deal and a fifth said they were cutting down on mileage.

ALD Automotive managing director Keith Allen said: “As the fuel price continues to rise, it has become increasingly important for fleet management suppliers to work in partnership with their customers and their drivers in helping deliver initiatives that can help deliver cost savings from improved fuel management.”

Fuel prices have surged in recent weeks, leaving many businesses reeling from the effects.

High prices may explain some of the decline in fuel as a benefit in kind, demonstrated in recent HMRC figures which showed the benefit to be in the sharpest decline.

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Now that the Government are putting information on Whitehall spending and procurement contracts on the internet to increase transparency, Mr Halfon said the same should be done for fuel duty.

According to FairFuelUK, out of a petrol or diesel fill up of £85, nearly £50 goes straight to the Treasury as tax.

Kate Gibbs, a spokesperson for Road Haulage Association said, “This initiative will serve as a real wake up call to all users of road fuels; petrol or diesel.”

FairFuelUK was central to a campaign that successfully deferred a 3p fuel duty increase from August to January 2013. However, it is now hoping to squash the increase all together and claims if it were to go ahead, the tax take per fuel purchase would become 59.32 percent.

“Filling the tank, regardless of size, has always been costly. If the cost of the fuel duty and the VAT is clearly shown on the receipt, it will make users far more aware of just where their money is going,”

“The price of fuel has become a wide reaching political issue; it affects everyone. If this move for transparency goes ahead, fuel pricing has the potential to become a real vote winner, or indeed vote loser”, continued Gibbs.

This is a move that could benefit the economy in general and the road haulage sector in particular as customers will see that they are getting the best possible rate for the job.

Mr Halfon’s campaign is backed by FairFuelUK, which has gathered more than 15,000 signatures on a petition.

Earlier this year, Chancellor George Osborne delayed a planned 3p rise in fuel duty from August 1st to January 1st next year following campaigns against it.

In other news,  Is your fleet fuel bill giving you nightmares?

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Our research shows that driving at 50 mph can use 25% less fuel than at 70mph; a reduction from 80 to 70mph can save 40p every 10 miles and driving at 90mph can use 60% more fuel than at 70mph.

But it is one thing preaching better, more fuel-efficient driving styles – getting drivers to follow this advice is quite another.
Incentives can be introduced to persuade staff to drive more efficiently or opt for more economic vehicles.

Keeping on top of where your fuel bill is being used can be a logistical nightmare at the best of times and regular driving tips just don’t get through to some drivers.

Offering encouragement and rewards can help reduce the overall fuel bill and a review of vehicle policy can provide savings.

Another way of taking control of your fleet fuel consumption is by using Fuelcards, a fuel card looks and works in a similar way to a credit card but with a few fundamental differences.
Firstly a fuelcard will save you money on each litre of fuel that you buy. It is also usually restricted to only allow the purchase of diesel / petrol, secondly, when it is used to make a purchase, both the vehicle registration and mileages are recorded against the respective transactions. Finally, your fuel card invoice also doubles up as a fuel management report, showing date / time / place of each sale, registration number, mileage of the vehicle collecting the fuel and of course how much was drawn. It will also then go on to separate the VAT element of all transactions for you.

Please check out this video for more information:

In other news,Saving Money on Diesel and Petrol

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Admiral Motor Insurance surveyed more than 3000 drivers this summer as part of its annual Survey of Motorists, and the results, announced today, revealed the British public thinks that they are being ripped off by the government. A further 42 per cent saying they would consider protesting publically about the cost of fuel.

More than 70 per cent even agreed they believe the Government is trying to price motorists off the road with duty and VAT.

Oil companies also came under fire from the public as 41 per cent blamed them for the cost of their fuel, while 25 per cent went for world affairs out of their control, and 20 per cent for petrol retailers.

Sue Longthorn, Admiral managing director, said: “The cost of fuel is certainly having an impact on the motoring public as over half have reduced the amount of driving they do due to the cost of fuel while two fifths have had to cut back on essential spending in order to be able to afford fuel.

“I’m sure no one wants to see a repeat of the scenes in recent years of petrol stations running dry and enormous queues,” she added.

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