Sigh

An increased tax on fuel (or any other form of carbon tax) would mean reduced tax on things like income.

The net government revenue position would be unchanged.

AK does not explicitly say this, but it is striped through the whole piece.

Richard Boyce, Haywards Heath, West Sussex

He must live in a different world - those of us outside of London need our cars to live -we can't get to work, shop or schools without them. Higher fuel prices don't stop us using our cars we just pay more.

Rod Lowe, Nuneaton, UK

Er, Graham from Cambridge - you simply SWITCH FUELS - economics 101.

Peter, London,

yes! more incentive for those who can barely afford daily life in this country to stop working and go on the dole. excellent decision. instilling this would kill the labour party though brown does seem to be a masochist.

Alexander, London, England

I'm sorry Mr Kaletsy but you've clearly lost the plot. This article, like yesterday's, makes me to wonder where you live, how you travel around, what your salary / purchasing power is and what your hidden agenda is - there must be one otherwise you could not be so out of touch with most UK residents

Tony, LONDON, UK

Ben,
yes, great idea. lets cycle 20 miles to and from work everyday in the rain. i sincerely hope you are joking. in every modern country a car is a necessity unless you live in an urban area...plain and simple.

Alexander, London, England

Jamie, Truro.

You have to drive 45 minutes to work. You burn a lot of oil doing this. Oil is running out. You will have to pay more and more in the future to live like this. The sooner you realise what's happeneing and plan for it the better for you. This is why I agree with Anatole's article.

Ted, London, UK

What a stupid suggestion to keep petrol prices high once the cost of oil falls. We will all be going on day trips to France to fill up the car and as many tanks as we could carry.
As for your remarks concerning rural use you must be in some sort of ivory tower.

V Cooper, Yeovil, UK

I think our concerns should be less green and more for people who will find life very difficult when these fuel increases take effect. There are many thousands of people in Britain who cannot afford to be 'green'. Politicians and the media alike need to get real.

judy, Liverpool, England

All well and good but we are over taxed all ready. If such a tax rise was implemented it should be revenue neutral by cutting taxes elsewhere

Chares D aniels, Lady Lake, USA

The government isn't bringing in the change to VED (vehicle excise duty) due to "green" issues, but because it INCREASES TAX REVENUE.

When deciding which is the more important
-save the planet ?
-help the economy ?

...the govt chose "help the economy" (extra Heathrow runway).

Not green !

clive, Surrey,

Instead of raising taxes the government should look forward.
It should increase the amount of electricity generated by renewable & nuclear sources significantly,fuel cells & hydorgen engines should be developed so they can replace those in cars/buses.This would cut down emissions & the need for oil

Tomas, Enschede,

this is socialist idealism in all its glory and has no basis in reality. this is self induced inflation because everything will become more expensive as production costs rise and are then past onto consumers making the tax rise self perpetuating.

Alexander, London, England

Trains are sometimes more expensive than taxis and unreliable and slow (relative to mainland Europe, Japan etc), buses are often very slow and don't go where you want without many changes. I want this changed rather than just taxing us off everything

David Hope, York, UK

So how exactly is the economy of this country going to function without road transport? Are we to become self sufficient by growing our own food on our apartment balconies?Are we all to work from home and empty all the office blocks? Even shopping exclusively on line requires goods to be delivered.

Andrew Pittman, Bristol, UK

Mr Anatole Kaletsky seems to have got it wrong. The present price is way over what it would have been expected to be when the escalator was introduced. Oil prices themselves have done the job.

M. Cawdery, Portadown, Co. UK, EU

If Gordon Brown takes this on would it be the longest suicide note in history for a government?

Ben , harrow,

For sustainabily in general we need to reduce consumption and switch to electricity . For transport that means more fuel efficient cars, a switch of freight from road to rail and less intercity travel by air. These are exactly the effects of increasing fuel duties . AK is right as usual.

stephen bull, fontes, france

There speaks a man with a viable public transport alternative. I live in the country (moved to be nearer my work) and if I want to get anywhere on time driving is my only choice.

Andy, Sedgeford,

Anatole. It's a pity that, in your opinion, taxation and ultimately hardship for the British population, is required to stimulate technological innovation. It is this that will tackle our oil dependency. In the future government need to be more innovative than taxation to solve our social ills

L Rosser, west midlands, UK

Anatole,
what about making it compulsory for every new house to have solar heating and solar cells to ensure energetic self-sufficiency? The market for solar cells would increase massively and individual installations would bemuch cheaper. Within years cells would be cheap and every house green

mauro boero, voorschoten, NL

Anatole, you usually write well, however you are so far wide of the mark on this one, it's not funny.

Cliff, Marseille, France

That's right - tax the people in the countryside. Eventually we'll have to move into the city because we can't afford to live in the village we were born in. Then all the middle class phwar phwars from London will be able to snap up all our cute cottages for their weekend retreats arriving in 4x4s!

Diane, South Brent,

All that extra tax means that many will be stuck with a larger car because they money for its replacement went on fuel tax that paid for a global warming jamboree. About as bright as most government revenue programs.

D Cage, Highworth, UK

Quite right. Fuel taxes should continue to rise, so our country can progressively & smoothly adapt to the dwindling oil supply, rather than having a sudden shock several years had.
Furthermore, if people still choose gas guzzling SUVs, fuel is just too cheap.

Jeff, Bedford, UK

To Ted, London,

Actually, most people don't choose to live in a rural area. most people who live in rural areas are born in rural areas.

Your comment indicates that you have no awareness of rural living.

Journey to work by car: 45 minutes
Journey to work by bus then train: Almost 2 hours. Get it?

Jamie, Truro, Cornwall

So Anatole, while you are keeping your eyes on the Big Picture on the far horizon, how do we keep truck deliveries going without adding to rising prices and inflation? Or is lower consumption part of the answer?

Brian Walker, London, UK

2p per litre equates to the VAT part of a 13.5p per litre rise in pump prices. Given the recent rises in pump prices there is absolutely no 'balancing the books' type logic that can be justified at present. The inflation effects on UK society must be also be 'balanced' with the green issues.

G Moss, Chepstow, Wales

Car Tax retrospection exposed the Green Fraud. Not Flash just Gormless.

B Newton, Redland, UK

Writers like Anatole do not need to drive at all!
Gordon could legislate for mandatory commuter house swops to reduce travel to say 3 miles.
Build communal accomodation for all receivers of benefits - very many possible savings here.
This would all be very welcome to the voters next time?

Jim, Prudhoe, England

The elasticity of demand for vehicle fuel is so low that all higher taxes would do is reduce demand for other things: fuel use would be little changed. Technology holds the key, not taxes - improved engines in the short term, and the fuel cell in the long term, will solve the problem

Bill Vincent, Sevenoaks,

totally agree, also time to replace council tax by a tax on domestic electricity/gas/oil. It would cost peanuts to collect and give everyone a real incentive to use less energy.

Jason White, Paris,

Anatole Kaletsky, what world do you live in as its not this one, if the government puts prices up like that i will vote BMP, or who ever it takes to get fuel prices down, All my be pie in the sky for times writers who never leave their homes but the rest of us have to live in the real world.

Mr W Jones, Liverpool, England

A fairer and more effective way to reduce oil consumption and increase tax revenue would be to abolish car mileage as a tax free expense for businesses. At the moment businesses are encouraged to travel to reduce their taxes.

Shaun Kelly, Reading, Berkshire

Global oil demand exceeding supply, no one could have predicted that.....

Funny how we have troops in a country with the largest untapped oil reserves?
Don't forget a large amount of government spending on a certain military adventure. Greenspan admitted as much.

T.P, UK,

If the fuel escalator hadn't been suspended after the fuel protests, the cost of unleaded now would be around 160p/L. Equaling an additonal £1000/year taxation for your average motorist. Just the thing for strapped households!Show us an example of a succesful economy adopting this level of fuel tax

Matt, Swansea,

Others have said it but it's worth repeating. Taxes on consumption hurt the least well off most. This chap may wince a little when he has to fill his tank but presumably he can still afford it. For most of the (i.e.ordinary) people in this country it's becoming a real struggle. Get it ?

Edward Simpson, Bristol, UK

Fuel Tax is about one thing, making money for our Goverment!

They realise making 60p out of every litre of petrol sold is a gold mine and they are not going to give up their Lion's share anytime soon, regardless of the situation.

We can't live without the black gold, we are under the thumb!

Andrew Towell, Hartlepool, England,

Car park tax? Road Tolls? I think Clive Stringer wants a job at Nottingham Council - I understand they are to have a car park tax. Talk about regressive taxes.

Ian Burgess, Bristol,

The USA consumes far more fuel per person than we do in the UK and if everyone in the UK cut their consumption by half it would make no difference in the total scheme of things.

Lets be honest, this is just a money making tax by Labour, nothing eco friendly about it.

joe, Edinburgh, Scotland

In the final analysis, we do need a viable alternative to oil, wh. wd. run out soon at our present rate of consumption. For the time being, alright, let oil find its true supply/demand value without the government treating motorists as a cash cow .i.e. revenue generating tax resource.

ian cheese, london, uk

Anyone who believes a high tax on fuel in the UK will make any difference to the planet is living in cloud cuckoo land.

Simon Marshland, Bath, UK

To believe that Britain can have any impact on the global environment you must have an IQ below 60!
Britain does not even feature on the scale. What we need is to have a fixed tax per liter and not a tax on the cost.
What does the government do with all that tax?
It squanders it on welfare payments.

peterj, malvern, uk

The fuel tax is a blunt instrument which does little to deter people from making those all too common little trips of 1-2 miles. These are the journeys where alternatives are a real possibility. Better town planning, road tolls and car park tax would all be far more effective tools.

Clive Stringer, Eggesford, England

"Living in the country ......is a luxury for which rural populations should expect to bear a cost. "
If I could afford a family home in the city (Aberdeen) I'd buy one. Living in the country 25 miles away and commuting is not a "luxury" choice for me but a necessity due to high urban house prices.

Richard, Gourdon, UK

Poor Gordon. Slammed by Anatole for not taxing enough, while other people claim it's all Gordon's fault the price is high (despite him coming off the fuel-price escalator in 2000 and freezing fuel-duty from 2003-2007)!

He can't win

Alyssa S, Southampton,

85% of what we pay for petrol is tax and yes, most people in the UK are not provided with sufficient public transport to use instead of driving their car. brown claiming he cares about the environment is just sad, he gets driven around in a Jag and heathrow was just expanded...who is he kidding?!

Alexander, London, England

The US would follow an EU lead?!? With the current wails of protest from American drivers about having to pay petrol prices less than half of what we pay in Britain, any US administration calling for increased taxes on petrol would find a new march on Washington heading their way overnight! No way.

David, Wokingham, UK

"steadily shifting the burden of taxes from incomes to consumption and from the poor to the better-off...."
What a complete load of rubbish. Direct tax always adversely affects the less well of. I doubt if the Chelsea set bother at an extra 2p a litre, but believe me, a family on average income do.

Tony Ford, Stockport, England

I like Peter Athey's comment about using high fuel taxes to fund cheap public transport. It's probably the lack of the latter which makes Jeremy Clarkson more popular than Jesus, and brought an end to EU price discrimination on car retail (though we Brits WANTED to pay more, much more, for them...)

Jonathan, Baldock, UK

Oh and don't forget that the Government gets twice the tax. They pile on the fuel duty and then charge VAT on the whole retail price. Thus they tax the tax ..... Hmmmm that doesn't sound entirely legal

Mark Websper, Margate, England

Taxing to manipulate behaviour is immoral. Taxing the life out of people who have no choice but to drive, is criminal. Britain is at a global disadvantage due to Brown's tax policies, which drive inflation and choke off growth. This. The chickens are coming home to roost.

Paul, Maidenhead, UK

'...a luxury for which rural populations should expect to bear a cost.'

I suppose we should all live in tiny, poorly constructed tower blocks opposite train stations and next to busy roads, where kids knife each other, run drugs and learn far less at school!

Urban eutopia, apparently!

Alistair Kipling, Birmingham,

DON't YOU THINK WE ARE TAXED ENOUGH ALREADY IN THIS COUNTRY!

Lower taxes increase prosperity and the tax take,its happened elsewhere,iy should happen here!

Anthony Hill, Neath,

Jon in CA makes a good point. In the 1940s and early 50s you could live in the country without a car because there were railway branch lines and bus services almost everywhere. Anatole is right BUT fuel duty rises must be accompanied by public transport improvements.

Barry, Wallington, UK

High fuel prices= Great news for environment and clean energy.
Low House Prices=Great news for first time buyers.
Good show Gordon Brown!!

Kara Swart, London, UK

Country needs an input of money, how about getting a million dossers and "sick people" of income support and into a job. And if they cant get a job then they should be forced to work for their dole. Simple, effective, policy. Politics would be easy if we had a gutsy leader.

Ryan Brook, Manchester, England

Tony scuttled off before all this started unravelling. Could it be possible that Gordon was lined up to take the inevitable rap? There is nothing the poor bloke can do about fuel prices or the global down turn. The Tories under Cameron would be faced with much the same dilemma and equally vilified.

Colin, Cambridge, UK

Reminiscent of the Vietnam war protests of the 60's and Poll tax protests of the 80's in this way: Government is running scared from a tiny vocal minority whom the majority of voters can't stand. Face them down. Arrest them and impound their lorries if they blockade anywhere. Nobody votes for wimps.

Eric Skelton, Cardiff, Wales

To those that say driving is a necessity for them: you chose a lifestyle that involves driving a lot, and I'm sorry but you made the wrong choice. Oil is running out. It's as simple as that. GB can do nothing about it. Taxing fuel now will help us prepare for the inevitable - REALLY high prices.

Ted, London, UK

How jolly selfless. But it might be more effective if the Americans, Chinese, Indians etc. could be persuaded to reduce their dependence on oil, because ours is just a drop in the ocean in comparison.

Richard , Bexhill, UK

Very clever, in an ivory tower sort of way.

In the real world it would be electoral suicide.

By the way, have you seen the new car registration stats?

Small cars up, diesels up, gas guzzlers down. The medicine's already working - no additional dosage is required.

Redcliffe, London,

For an economist I'm suprised that you don't seem to realise the effect of compound annual interest. Over the medium to long term an escalator policy would result in an exponential rise in fuel prices. This is what occured earlier in the decade resulting in the fuel protests.

Matt, Swansea,

Totally out of touch with everyday life. Sorry, but many of us do not have great public transport options available (particularly with shift work), work long hours and cannot spend an hour or two cycling to work in either direction in all weather while getting adequate sleep and a life.

Tim, Harlow, UK

Making oil artificially expensive through tax does not have a genuine environmental benefit unless it is implemented globally which seems unlikely. This is because the oil will continue to be pumped and sold as long as it's there......it's just that someone else will get to buy it cheaper than us.

Ruaridh MacCallum, Stirling, Scotland

In principle it's a sound idea, however what seems to be lacking from our govt is any assurance (or more importantly evidence) that taxes taken for environmental reasons will be reallocated to solve problems in other areas.

Kev Jones, Winchester,

<<< Wrong. European legislation does not permit reductions in VAT. >>>

The Chancellor, Gordon Brown, today confirmed his manifesto pledge that the rate of VAT on domestic fuel and power will be reduced from 8 per cent to 5 per cent, the lowest rate possible under EC law.

HMRC : 2 July 1997

Alan, edinburgh, uk

Garbage! Totally out of touch of real life.

Mark, Birmingham, UK

"You'd kill our haulier industry, hammer the poor, ruin country life & many small businesses, cut mobility etc. etc.!!"

And achieve nothing globally.

Why should the British be asked to underwrite global pollution. It requires a global response and we all know how difficult to get that will be.

Peter, Norwich, UK

Ben, Oslo. You cycle 20 miles to work (and back) in the middle of winter? What about holidays? Can you get shopping for the family on your bike? If you answer 'yes' to all of these then much respect, otherwise preach elsewhere.

David Leslie, Perth, Scotland

Car ownership --and hence petrol consumption control -should be linked to home ownership. Those that own or live in higher banded council tax properties, ie those that have more rooms- should be allowed to own proportionally more cars than those in the lower bands.

william grierson, Kimpton, UK

"The big environmental sin that Gordon committed was to reduce the rate of VAT on domestic fuel."

Wrong. European legislation does not permit reductions in VAT.

Peter, Norwich, UK

The greatest leader Great Britain has ever seen once said " There is no such thing as a good tax" and also " the farther back you look, the further forward you can see" It's about time these modern-age political prats started taking a few leaves out of Winstons books.

Mark, Portsmouth, England

"If the treasury delays the fuel duty increase due to higher fuel prices the exchequer will lose nothing - because 17% of the 15p by which prices have risen since the policy was announced is VAT"

Wrong. The rate of VAT on fuel is 17.5%.

Peter, Norwich, UK

Well, it would appear that this correspondant can afford to absorb ever higher taxes on his hugely inflated salary. Typical nuLabour supporter, completely divorced from reality, overpaid and doing a 'non-job'. Oh and by the way - public transport IS NOT an alernative outside London!!

Dean, Manea, UK

Where would Anatole's "escalator" end? To increase fuel prices by a factor above inflation means that a gallon of petrol would eventually exceed the price of a house. How would the economy function? Presumably only government-sanctioned activities would be possible. We're back in the USSR!

Graham, Cambridge, UK

'First and foremost, Mr Brown should admit that he made a big mistake'.

What did John McEnroe say? Oh yes, that's it - 'YOU CAN NOT BE SERIOUS'

Richard Crompton, Baden, Switzerland

Any Chancellor who announced this policy would pretty much guarantee to cost his party the next General Election.

On that basis alone I can't see it ever happening.

Sean, Surrey, UK

It's fine saying we need to reduce oil consumption and raising taxes will acheive this but how do we really manage without using oil? No amount of taxes have really been spent on alternatives to oil, public transport is not really any good and no forward planning by T. Blair, G.Brown et al.

Robert, Derby, UK

I can't believe how lazy society has become. Why do people assume it is a born right that they should be able to afford to buy and run a car? If you live within a 20-mile radius, cycling to work is not a problem. Though, I guess most of you guys would prefer to sit on your backsides all day long.

Ben, Oslo, Norway

You are absolutely right. HGVs need to be more fuel efficient, supermarkets should buy more local produce, and people should regard cars as fuel efficient transport not status symbols. Old, thirsty cars should be bought off the road and scrapped by the government to encourage fuel economy.

Tony Gee, London,

Why should the motorist, New Labour's cash cow, face more disproportionate taxes to fund Brown's profligate & mismanaged spending. For green taxes to be accepted they must be fair. You'd kill our haulier industry, hammer the poor, ruin country life & many small businesses, cut mobility etc. etc.!!

Tony, LONDON, UK

Why just fuel? Why not apply an "escalator" to all scarce resources?

Taxing food more heavily would teach us all to live healthier lives and free up farm land for productive industrial development. Our children would be smaller so more could be fitted into our smaller, more fuel-efficient cars.

Richard, Cambridge, UK

Stop moaning! If you are really poor than you do not have a car and you will have realised you can leave the heating of for about 11 months of the year. Have you started driving less than the speed limit? Didn't think so. Still trying to outkick the other guy at traffic lights? Pathetic.

Tim, London,

The big environmental sin that Gordon committed was to reduce the rate of VAT on domestic fuel. This is one of the highest and most easily reducible energy users. When he did this he gave a very early indication that he would put political objectives above environmental ones.

Joe C, Crediton, Devon

What is the point of raising tax on our fuel consumption? China, Saudi, Venezuela are only three examples of countries who subsidise fuel costs. Does Brown believe his taxes help save the planet? They just help him out of a budgetary mess and destroy our international competitiveness.Yet more spin.

david redwood, london,

yet again a correspondent who thinks in a single carriage way.
it is simple to suggest the best method of reducing hydro carbon useage is tax, without at the same time providing at least a sensible use for the revenue raised.
revenue to a goverment without objectives is equally disastrous

john haydon rowe, javea,

Brown cuts a pathetic figure trying to spin his way out of a mess of his own making. There is NOTHING he can do or even influence world oil prices so stop trying to con us and cut fuel taxes if you really want to help. Otherwise, just retreat into the hole you usually go to when things get tough.

Mike, Alicante, Spain

First part of Labour plan is complete - don't build any new roads. Second part should be to reduce fuel taxes, and allow the roads to jam up this would soon stop people driving around for "fun", and leave plenty of "choice" for those who don't want to spend the money saved from low transport costs.

Jimd, Norwich, Uk

If the treasury delays the fuel duty increase due to higher fuel prices the exchequer will lose nothing - because 17% of the 15p by which prices have risen since the policy was announced is VAT, plus extra corporation tax from the oil producers profits.

Neil Jones, London,

The costs of travel clearly do not form a high part of Mr Kaletsky's disposable income. And when the poor cannot afford fuel what will they do? Refuse to pay car tax and avoid paying for car insurance. These are just for starters. There is no alternative form of transport for many.

Tony G, Newark,

More tax? Mad, mad, the man's quite simply mad.

GeoffH, Milnthorpe,

Why are you talking about increasing taxes? Hasn't this government done that enough...and still got us into a mess? We need a government which can reduce all the waste and then be able to bring the national debt down and reduce taxes!

martin, shropshire,

I'm sure you will get email from rural dwellers, but you could remind them that during WWII people lived in rural areas despite petrol being close to unobtainable, except for doctors and emergency services. If you constantly drive to and from town, you don't really live "in" the country at all.

jon livesey, Sunnyvale, CA/USA

Does Mr Kaletsky want Labour to win any seats at all at the next General Election?

Peter Crawford, Harrow, UK

i couldn't afford to buy a house within the limits of the city in which i work. (I work for the NHS and earn below the average wage) so i had to move to a surrounding town and have to commute 27 miles too and from work. Another comment from a lodon living idiot

kris, rothwell, northants

can somebody tax that volcano thats just erupted and caused more damage than the rest of the worlds population. what about bessie the cow? is she taxed per fart?

it is all a big con designed to keep the middle class subservient. dont buy into it! the current crisis is caused by greedy middlemen

dave jones, manchester,

I am sure that you do not live in the real world. If everyone moved to the city, who would grow your food. Would you be willing to pay very large sums of money for your basic daily needs. Its the honest chap who takes to the blame again and pays through the nose. People who keep this country moving.

B Carpenter, Walsall, West Midlands

What about all those on low incomes who are struggling on low or minimum wage? They cannot afford above-inflation increases year on year. Govt created an economy based on car ownership - it is impossible for a family to live without one. It would be electoral suicide if Gordon did what you suggest.

Donna Walker, Effingham, England

I support Anatole Kaletsky's radical proposal. I often travel by bus at rush hour times in Herts and am appalled by the number of single occupancy commuter cars all taking similar routes to work. Its high time to use fuel more efficiently than this. Guaranteed increases in fuel tax will ensure this.

Malcolm Williamson, WGC, UK

So the escalator shifted the tax burden from the poor to the better off? What utter rubbish! It is the poor who use the bus for the trip to school/Tesco's and not the SUV and use the car, if they have one, when they need to. They pay their own way rather than have a company car and fuel allowance!

Roger, Milan, Italy

The high price of fuel at the pumps has not resulted in a commensurate drop in fuel usage. Motorists drive out of necessity.

Before encouraging people to huddle together in urban developments, how about dropping schemes like the Olympics. How many journeys will that entail ?

Anthony, London,

We could all have been driving electric or electric hybrid cars by now, the technology has been around for years, You need to watch the documentary "who killed the electric car?" You can buy it on DVD.

Max
http://theerrorlog.blogspot.com/2008/05/petrol-problem.html

Max, London,

This is another article written by someone earning well above the average wage and probably tele-commuting or with good public transport links.
To progress my career I need to drive to my work or move house every couple of years - but then I would be paying stamp duty on the house move.

Andy, Chester, UK

I am appalled that the UK and Europe do not see the golden opportunity to boost their economies by REDUCING fuel taxes, letting their economies grow while the US economy declines under the impact of a huge percentage increase in fuel costs, brought on by wasteful habits and historically low taxes.

Scot Danner, Dubai, UAE

How exactly do carbon taxes work? Who gets the money?

John, Tulsa, USA

I wonder what planet Mr Kaletsky lives on - re-introduce and increase the fuel the fuel escalator to 5 % points above inflation - give me a break. There is not a cat in hells chance that the US would adopt such a policy - it would be political suicide, as it should be here in the UK.

Barry Dexter, Preston , UK

Amazing.

More taxes, just what the UK needs ? I don't think so.

As a wise man said, you can't tax your way to prosperity.

Stan(expat), USA, USA

In recent elections the populace sent the strongest 'signal' possible to the Chief Commissar as to what he could do with his social engineering.

roger sykes, christchurch,

Oh and let's abandon all dwellings in the countryside since these are much too expensive and environmentally damaging. What nonsense. How are we to house all those people? We can't fulfil the housing demand as it is. You've lost the plot on this one Kaletsky.

Mike, NYC, USA

i am sick and tired of hearing the Govt say that energy prices are a global problem. Oil is still cheap its the tax on it that hurts. It hurts even more when we see them waste all the tax. How come there has been no noticeable improvement to public transport and services in the past eleven years?

TC, London,

When will you chattering class elitists actually get it? Do you really think that the rest of us use petrol for the sake of it, because we like paying a £1 a litre and think traffic jams are a fun experience?

You want to reduce usage - provide realistic alternatives. Simple brutality will not work.

Alex Swanson, Milton Keynes, UK

What Gordon Brown needs to do is something totally radical:

Shift all fuel taxes into a "Green Fund" which would be used for:

1) maintaining roads
2) subsiding public transport
3) subsiding alternative energy including solar, wind, geothermal, and of course conservation

Vishal Patel, London, UK

What a great idea - in utopia!! IF the taxes taken on fuel were not thrown away into a social security system that is abused by so many, the public might support it. And until this govt stops wasting money on stupid quangos, this argument is dead.

Richard, Plymouth,

Petrol is still much cheaper than soft drinks and cheaper per mile than local buses benefitting from fuel duty rebates.
Keeping petrol prices high will encourage moderation of use, for example BA driving lost bags to Italy and back and supermarkets importing carrots and potatoes from Southern Europe

W Smith, Bath, UK

I hope petrol prices keep going through the roof. The sooner we become less dependant on the stuff the better and the quickest way to do this is to make it expensive.

MG, Brisbane, Australia

"The escalator also improved Britain's fiscal structure by slowly but steadily shifting the burden of taxes from incomes to consumption and from the poor to the better-off."

What a load of nonsense! Since when is an indirect tax fairer on the poor?

Pedro, London,

I would agree that gasoline be kept expensive - but only over the pond -perceived US gasoline demand is the puppeteer which has been dragging crude up for ages now - with the SUV love affair aproaching the end, hopefully the US manufacturer and consumer will see the error of their ways - and wars.

patrick, The Hague, netherlands

Gordon take a lead and take VAT off petrol and reduce the fuel tax by 25p per litre at least then steadily remove the fuel tax altogether please.

Chris Williams, Bridgend, UK

Keep fuel taxes high and earmark large % of money for a comprehensive range of cheap, comfortable, clean and safe public transport - buses, trams, trains - in both urban and rural areas.

Build cycle paths everywhere; and let pedal-power melt that middle-age spread. Biggest beneficiary - the NHS.

Peter Athey, Paris,

While income tax on fuel-paid company car benefit doesn't depend on how much the car is driven (only its CO2 emissions per mile) and while stamp duty makes it very expensive to move house when you move job, many people have few incentives to travel less. Gordon Brown got both of these things wrong.

HJ, Reading, UK

It was right to end the original fuel tax escalator, it was far too mechanistic. There is no "lost revenue" from deferment of tax increases. It's all OUR money which we allow the treasury to spend on our behalf. It is this kind of arrogance which voters refuse to accept. US gas price is £2 a gallon.

Mike, NYC, USA

I don't think you'll be popular with this one!

But you're broadly correct. Fuel taxes are partially avoidable, and largely progressive, and therefore much preferable to income tax.

There would need to be a Lorry Road User Charge to prevent foreign hauliers gaining an advantage.

Alex, Tunbridge Wells, Kent

Why should we conserve fuel in the form of petrol? Domestic fuel is hardly taxed at all, but the carbon is still the same. I have a friend who burns more fuel in the Aga than in the family car, yet despite the fuel being pretty much the same, the cost is radical.

Kay Tie, York, UK