By Nick Gilbert
AWimbledon, UK-based car insurance service provider, MotorQuoteDirect is examining the impact of the set fuel increase on the public, as there has been a boost in green car purchases.
In August 2012, prices of the fuel are going to rise by 3p. On the other hand, several people have opted to buy greener vehicles to save their money. The government encourages this public action, which will help lower the carbon footprint of the country. Thus, this is seen as a positive approach: people are purchasing a large number of economical cars for saving money and in turn save the earth. However, there is a downside in shifting to greener cars.
In the recent budget, the government stated that it will consider the prices paid by the public for car tax to make sure that all car users continue to provide a reasonable contribution to the public funds, noted Joe de Vries from MotorQuoteDirect. This means that the government requires a way to recover the money that is going to be lost due to the purchase of more economical vehicles. The only mode to recover is by increasing the prices for fuel and car tax.
The Office of Budget Responsibility has announced that there will be a loss of £700 million in the next three years. Therefore, they have planned to increase the car tax prices to an extra £20 for each motorist.