Cut your fuel costs with economical driving

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Written by Mark Burton
Know Your Money editor

The government has increased fuel duty by two pence per litre today (September 1st) in a move that has been widely condemned by motoring groups.

With the price of petrol climbing to £1.05 on average, there has been broad criticism of the timing of the hike among both consumer groups and the haulage and agricultural sectors, with many fearing a return to the exorbitant fuel prices that sparked protests across Europe last year.

Commenting on the hike, Adrian Tink, RAC motoring strategist, described the move as "unacceptable" and explained that with three fuel duty increases since December 2008, the average motorist has seen a 23 per cent rise in pump prices, equating to an £11 rise for every car on the road.

"The chancellor seems to regard Britain's 30 million motorists as a soft target for tax and with this latest rise he risks alienating them even further. The government needs to appreciate the impact such taxes have on cash-strapped families," he exclaimed.

But while there is much anger about the hike, motorists keen to keep their petrol and diesel costs down may still be able make savings by adopting more efficient driving habits.

Slow and steady

One of the key ways to improve engine efficiency is to drive at a slow, regular speed, with figures from the Slower Speed Initiative indicating that motorists can reduce their fuel bills by as much as 30 per cent by driving at 50 miles per hour instead of 70 mph.

Meanwhile, the Money Saving Handbook from consumer watchdog Which? also recently urged drivers to check their vehicle was in good running order on a regular basis in a bid to ease the pain of petrol prices in excess of £1 per litre.

According to the group, under-inflated tyres can add up to eight per cent to fuel costs, while also increasing the risk of uneven wear and premature failure.

This was an action area also identified by specialist over-50s motor insurance provider Rias, which advised its customers that checking tyre pressures before starting a long journey could help to reduce spend at the pump considerably.

Meanwhile, planning such journeys properly before setting off may also help to keep costs down, particularly for those who travel regularly as part of their job.

The company's managing director Janet Connor explained: "There are certain tried and tested techniques drivers can adopt to cut down on motoring costs, such as gradual acceleration and braking, using the correct gears, and adopting high levels of road awareness, and these happen to be the natural hallmarks of over-50s driving style."

As well as helping to reduce road costs by cutting down on wear and tear, by driving in a slower, steadier manner, motorists can also help to reduce the risk of being involved in an accident, Ms Connor concluded, explaining that statistically, older drivers cause far fewer accidents than younger drivers.

In turn, those drivers who maintain a good driving record by adopting an over-50s approach to motoring could find they can save themselves considerable sums on their car insurance by maintaining their no-claims bonus.

Prepare for further hikes

Adopting more economical driving habits may become even more important in the years to come as the Chancellor of the Exchequer has made it clear that motorists are in line for more hikes in the months and years to come.

When he announced the annual Budget back in April, Alistair Darling confirmed that motorists can expect to see further rises of 1p per litre on petrol and diesel every year through to 2013.

However, the RAC's Mr Tink warned that there may be more fuel misery in the short term as the VAT rate will move back to 17.5 per cent this winter, while rising oil prices are also likely to add to pressure at the pumps.

For those who are keen to minimise the impact that both short-term and long-term price hikes will have, it may be worth considering an altogether more popular scheme introduced by the government earlier this year.

Under the car scrappage scheme, anyone with a vehicle over ten years old can apply for a £2,000 rebate on the cost of a new car, making a greener model both an economically and environmentally sensible option.

Important Notice
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