Protests over fuel prices are starting to kick in again, with a number of convoys around the country on a go slow impacting traffic.  More details at BBC NEWS.  According to the BBC …

Treasury spokesman said the government understood business and families were “feeling the pressure from high fuel prices”.

But they said the “immediate priority” was to encourage oil-producing countries to increase output, that a 2p-per-litre fuel duty increase had been put back from April to October and fuel duty was “still 11% below its 1999 level, in real terms”.

The fact that the prices are 11% less in real terms, is misses the most crucial the point, which is the rate of change that is the problem, and that if fuel prices are to rapidly correct based on that real terms figures is going to really hit inflation. tags: , , ,