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Petrol Prices – Here We Go Again January 17, 2011

Its been a while since I last wrote about record highs at the pump but super high prices are back again, along with talks of blockades and strikes.

Its a familiar story but this time I’m not sure what can actually be done to bring the prices down.  The root cause of the problem is actually very simple; the price of crude oil has spiked very quickly over the last few weeks.

Although there is a simple explanation, the next steps of how to tackle prices of around £1.40 for petrol are not so easy to decide upon.

The obvious answer is that the government could reduce the amount of tax that makes up the price of petrol.  The problem is that its not really that easy.  Yes, it would definitely reduce the price of petrol and diesel in the short term but there are a few problems.  Firstly, the UK government would miss out on valuable tax income which is desperately needed to offset some of the harsh cuts that have been made.  The second point is that this price rise will likely come back just as soon as the price of crude spikes again from its current position.

This second price rise would be a permanent part of the cost of fuel until the cost of a barrel of oil falls back below the $95 mark.  This is quite unlikely due to the state of the US economy so it looks like high petrol prices are here to stay.

With this in mind you need to make sure you take every opportunity to save money.  Get a car insurance quote  with Quotezone and save yourself an absolute fortune today.  Its quicker and cheaper than ringing around endless brokers and insurers and dealing with call centres.  See how much you could save today and offset the cost of the petrol rise for this year.

Cheap car insurance prices brought to you by multi-quote.com and QuoteZone
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