What is it with all this panick buying, even before protests start, we have fuel shortages. Perhaps then this will be the new tactic to make life dificult. Fuel protestor will start repeatedly threatening to protest, wait for fuel pumps to run dry, and then say they were only kidding. When this stops working, they'll actually make a blockade, and then they'll start with the scaremongering cycle again. Well, maybe not, but you never know.
Of course, the real question is, will this change anything? And if so, is this really a good change? Let's have a thing about a few options here...
Fuel tax down, bigger defecit
The government could cave in, but not do anything else - this is a gamble, and would be based on some theory that it will kick start the economy into growth. This could be lucky, but if unlucky, then it would have a long term impact, and the conservatives would have a field day.
Fuel tax down, other taxes up
This is more likely. It will make people think they are richer, and some people might be. However, some people might not be, it would all be swings and roundabouts. Ultimately, it would be got away with, and the tax system would once again get more complex. I find this terribly in-elagent, but that is the way taxes will inevitibly go under any of the popular governments. This is of course due to the fact that everyone wants public services, but no-one is prepared to pay for them
Fuel tax down, services down
Or as the conservatives might tell you, "a more efficient public sector". This is the conservative way, a way for the eighties, or something like that. I don't think Labour are meant to be into this kind of thing, but you never know. I don't like this option, but you never know, I could be wrong. Dunno, suppose that's what comments are for.
Fuel tax Stays Up
To be honest I don't see anyone caving. I think that tax will stay as is, and prices will go up till we're not prepared to pay anymore. This is how a market economy works. People want something - it gets more expensive. No-one wants it - it gets cheaper.
So more expensive oil, petrol etc. What is the solution, what will happen. Well things might get cheaper in a few years if more refineries are built - but this is bad for the environment. If you have a diesel car, you could convert to vegetable oil. This is better for the environment, and cheaper too. In fact, I'd like to see the government encourage this, by dropping the duty on vegetable oil used in cars. Alternatively, but this will take a long time, we could switch to other renewable (yes, vegetable oil is renewable!) sources of energy, like wind, wave and solar power. Still waiting for those off-shore hydrogen (wind/wave -> spliting water into hydrogen and oxygen) factories...
Labels: political comment
