bemoreeco

There is a lot in the news at the moment about the Government’s green taxes, fuel protests, the price of oil and Gordon Brown’s meeting with oil chiefs to resolve the problem. If you’re a little overwhelmed, or just plain busy, here is a simple explanation.

The price of fuel is rising to such an extent that if the Government goes ahead with additional green taxes it will force many companies out of business. However, if the government fails to push ahead with these taxes it will signal that the environment features relatively low on the government agenda and is likely to be pushed further down any time we have a crunch. So it really is quite the predicament for our beleaguered Prime Minister.

What it means for you:

Well, if you bought a gas-guzzler since 2001, or plan to buy one in the future, you might be hit with a tax charge of up to £200. Alternatively, the charge might be dropped and bigger environmental problems, and taxes, will arise in the future.

It’s a rather academic debate mind. Oil is a fossil fuel, it’s going to run out. The less oil that remains, the more it’s going to cost. So any protests based on the price of oil is short-term. Whether now or next year, the price of oil will rise. The less oil we have, the more it’s going to cost.

Our view? Keep the taxes. Companies that want to survive will innovate, become more efficient, lobby for research on renewable sources of energy. Companies that don’t want to survive, wont.