Drivers could be banned from using their cars on Sundays under a new plan aimed at limiting the UK's reliance on oil as Russia's invasion of Ukraine continues to impact demand.
Other measures include cutting the motorway speed limit to 64mph, and people working from home for three days a week. The suggestions, outlined by the International Energy Agency (IEA), could cut global oil demand by 2.7million barrels per day within four months, according to the Mirror.
The measures come ahead of the Chancellor’s Spring Statement in which fuel duty - a tax paid on petrol and diesel prices – could be cut by 5p-a-litre, reducing it from 57.95p to 52.95p paid on every litre. Fuel prices continued to rise over the weekend, despite wholesale prices falling for more than 10 days, experts said.
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The IEA is based in Paris but represents 29 nations in total. The forum said its proposals are 'practical actions' that could significantly reduce oil demand and soaring prices that motorists are currently facing across Europe.
The scale of the daily reduction on oil use would be the equivalent of not having to fuel all the cars currently used in China, the IEA said. The introduction of car-free Sundays in major cities alone would cut oil demand by up to 380,000 barrels per day.
IEA executive director Fatih Birol said: “As a result of Russia ’s appalling aggression against Ukraine, the world may well be facing its biggest oil supply shock in decades, with huge implications for our economies and societies. IEA Member Countries have already stepped in to support the global economy with an initial release of millions of barrels of emergency oil stocks, but we can also take action on demand to avoid the risk of a crippling oil crunch."
Ms Birol also said the 10-point plan has already been tested and proven in multiple countries. Currently, a driver filling an average petrol car with 55 litres of fuel is paying over £47 in tax alone, with VAT paid on top of fuel duty at 57.95p a litre.
RAC fuel spokesman, Simon Williams, said: “The window for pump prices to come down appears to be have been well and truly closed, with both oil prices and therefore wholesale fuel costs once again rising after last week’s big drop, putting yet more pressure on households and businesses.In just the last week, the average cost of a litre of petrol has gone up 3.5p and diesel by a staggering 5.5p.
"Filling up a 55-litre family car now costs £91.86 for petrol and £98.43 for diesel. Drivers faced with spiralling costs when they fill up will undoubtedly be looking to the Chancellor to act in Wednesday’s Spring Statement, so suggestions fuel duty may be cut from its current level of 57.95p in every litre of fuel sold will be widely welcomed.
"While there has been talk of a 5p cut in fuel duty, this may not be deep enough to make a real difference to drivers who are facing the highest ever costs to fill their tanks. However, ensuring all drivers fairly and fully benefit from the fuel duty cut depends entirely on retailers reducing their prices and not using it as an opportunity to take a greater profit on every litre they sell. On the other hand, reducing VAT, which is a tax on a tax, prevents this from happening and would guarantee drivers benefit fully.”
IEA's 10-point plan to combat rising oil prices:
- Reduce speed limits on highways by at least 10 km/h (6mph)
- Work from home up to three days a week where possible
- Car-free Sundays in cities
- Make use of public transport cheaper and incentivise micromobility, walking and cycling
- Alternate private car access to roads in large cities
- Increase car sharing and adopt practices to reduce fuel use
- Promote efficient driving for freight trucks and delivery of goods
- Using high-speed and night trains instead of planes where possible
- Avoid business air travel where alternative options exist
- Reinforce the adoption of electric and more efficient vehicles
What do you think of the 10-point plan? Have your say in our comments section.
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