London, 7 Nov 2006.
For immediate release.

Contact the ABD

Previous
Press Release
Next

Motorists already pay for their carbon emissions FIVE times over
The recently published Stern Review on Climate Change suggests a "carbon tax" of $85 (44) per tonne of CO2 emitted, claiming that such a tax covers the economic cost of the climate change allegedly caused by that tonne of CO2.
The ABD had calculated that Stern's carbon tax equates to 18.3p per gallon of petrol and 20.7p on a gallon of diesel (1)
 
This compares most favourably with current fuel duty rates of 48.35p + VAT - a total of 56.8 pence per litre on both fuels.
 
ABD spokesman Paul Biggs comments,
"I was surprised when I worked out that motorists already pay at least FIVE times more in fuel duty than Stern claims is necessary to tackle climate change. But it's true. And this is just the fuel duty and associated VAT — drivers are paying VED, company car tax, and VAT on the actual cost of the fuel on top of this — not to mention the escalating prices of congestion and parking charges. The environment is used as an excuse for much of this — just how many times over do they expect us to pay for their dubious claims of environmental damage?"
The ABD has long argued that motoring is massively overtaxed. Now we have support from an unexpected source, Sir Nicholas Stern.
 
If Carbon alone (2), rather than CO2 is considered, the Avensis driver will pay 20 times more than the figure quoted by Stern and more than 10 times the government's figure.
 
"The Stern report shows there is no justification for increasing tax on motoring," said the ABD's Nigel Humphries. "Instead, Stern's numbers suggest that the billions raised in fuel duty are being misappropriated by the exchequer when they should be invested to improve transport choices for everyone."
 

Notes for Editors:
 
Calculation 1:
 
Example Car - 2 litre petrol Toyota Avensis - 191g/km CO2 and 34.9mpg
 
Does 3263 miles (5236km) per tonne of CO2 emitted, using 93 gallons (424 litres) of petrol
 
44 per tonne Carbon Dioxide tax equates to 18.3 pence per litre, compared with 56.8p in fuel duty on ULSP (including VAT)
 
Petrol car driver pays 5.5 times more in fuel duty than Stern's carbon tax would require.
 
Example Car - 2 litre diesel Toyota Avensis - 155g/km CO2 and 48.7mpg
 
Does 4009 miles (6452km) per tonne of CO2 emitted, using 82 gallons (374 litres) of diesel
 
44 per tonne Carbon Dioxide tax equates to 20.7 pence per litre of diesel, compared with 56.8p in fuel duty on ULSD (including VAT)
 
Diesel car driver pays 4.8 times more in fuel duty than Stern's carbon tax would require.
 
The difference between petrol and diesel arises because diesel fuel is denser and contains more carbon per litre than petrol.
 
Calculation 2:
A typical 2-litre petrol car (Toyota Avensis) emitting 191 g/km CO2 and averaging 34.9 mpg would emit a tonne of CO2 for every 5,236 km travelled, using 424 litres of petrol in the process. With fuel duty plus VAT equal to 56.8 pence per litre, the tax paid for every tonne of CO2 emitted is £240. Of this, a fraction equal to 12/44 is carbon. Therefore to get to one tonne of carbon, the Avensis driver will pay £880. This is 20 times more than the figure quoted by Stern and more than 10 times the government's figure.

 

 
Notes for Editors