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Sunday 16 January 2011

On sale today: the £6.59 gallon from BP

Less than a month after Mr Money revealed that the £6 gallon had arrived in Britain, he warns that the £7 version is just around the corner.

David Cameron on the campaign trail in spring 2010 Photo: GETTY IMAGES

I wish the big motoring associations would stop banging on about how the average price of a litre of fuel is steadily rising.

Has there ever been a year when the cost of a litre of diesel or unleaded at the pump hasn’t risen at a steady pace? Not in my memory. So is there any point in beating ourselves up when our fuel bills increase by a few pence per week or a few pounds per year? Compared with crippling new car depreciation and heinously expensive vehicle insurance policies, this is comparatively small change.

If fuel costs mean that much to you, then drive a little more gently and slowly, travel outside peak times (thereby allowing your vehicle to sip rather than guzzle) and try having your car’s fuel system cleansed. Better still, if you can work from home a couple of days a week you’ll reduce your fuel bills for commuting by a significant 40 per cent.

Readers of this column have known for a month that the £6 gallon was sneaked onto forecourts late last year, when everyone had an eye on the snow.

Now, sadly, I have to report that the £6.50 barrier has been breached in recent days. It’s only a matter of months, or possibly even weeks, before some unsuspecting drivers start paying £7 per gallon. And if things continue at this inflation-busting rate, the £10 gallon will arrive on our forecourts sometime during David Cameron’s first term in office. This despite the fact that when I spoke to him on the election trail last spring he personally assured me of the following:

“With our fair fuel stabiliser, for example, motorists will get a fairer deal,” he said.

How, where, when? He needed to explain, I told him.

“It’s simple: when oil prices rise, fuel duty will fall and vice versa. So instead of the unpredictable situation we’ve got now [in spring 2010, remember] as we’re battered by the global oil markets, with our plan, prices at the pump would be more consistent. We can help families by cutting fuel taxes when global prices rise. That’s the kind of real, responsible difference to motorists a Conservative government would bring.”

Really? BP – and possibly others – has within the past few days started charging up to £1.45 per litre at its sites, whether they’re in remote villages or on busy motorways. That’s equivalent to £6.59 a gallon.

When it rises a further nine pence to £1.54 a litre, the £7 gallon will be with us and a car with a 22-gallon tanks, such as a Range Rover, will cost more than £154 to refuel.

* Suzuki can't put a foot wrong at the moment. Not content with producing and selling its strongest product line-up ever, the underrated Japanese manufacturer is extending its VAT free offer on some models until March 31. It is also offering 0 per cent APR hire purchase deals on new Swift, payable over three years for those who put down 50 per cent deposits. No Japanese manufacturer seems keener to sell cars.

* Delivery mileage Renault Laguna Coupes have recently been spotted with discounts of more than £9,000, bringing down the asking price of the 2.0 DCi 180 GT version to a shade over £20,000. That's an awful lot of unused motor for the money. Buyacar.co.uk might have one or two left at this sort of giveaway price.

* For a variety of complicated reasons that I'll be explaining in future weeks, Volkswagen has already overtaken Ford in the new car sales league in Britain. Officially, the latter still clings to its number one position. But unofficially, it's my contention that VW has now inherited the top slot from the blue oval. And the main reason why VW has ousted Ford? Price.

When it was named World Car of the Year in early 2010, the VW Polo could be purchased new for a shade under £10,000. Now it is being offered at £9,495.

To salt into the wounds of Uncle Henry, Skoda, a respected member of the VW clan, is continuing to hold on to its title of Consumer Champion after announcing that it will be paying the 20 per cent VAT on behalf of customers who order new cars by March 31. Skodas were already inexpensive. With zero VAT they're almost being given away.

* Don't get caught out by the Carphone Warehouse, which is trying to sell a product - the unremarkable Alcatel OT 209 mobile - for a penny. It's too much. If a mobile handset isn't free, don't touch it. Besides, cash buyers who want this product at this (claimed) price will actually need to hand over a penny for the phone plus a £10 note for the purchase of a so called "top up" which allows the thing to be used.

What next, a new supermini for 1p... but only on the condition that the purchaser pays a £20,000 "topping up" fee for the ignition keys? Now there's an idea for a keen, young marketing person trying to make a name for themself at a car company or ad agency.

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