gmb45
4th June, 2009, 05:41 AM
Drivers are cutting back on motoring once more as average prices at the pump hit ?1 a litre again, says the AA.
Prices hit a peak of more than 132.9p a litre last summer
The ?1 mark was reached on Monday and prices at the pumps have now risen 4p a litre in the past month, the motoring organisation says.
A poll of nearly 15,000 drivers conducted last month found that 26% are using their car less, 12% have reduced spending elsewhere and 17% are motoring and spending less.
For those spending less, the main areas for cutbacks are eating out, followed by film, theatre and entertainment.
High prices are particularly hitting those in the skilled service and manual workers in the C2 socio-economic group.
Regionally, people in south west England, Wales and the West Midlands were cutting back on spending the most, while Londoners - who tend to have low annual mileage - were least hit by rising fuel costs.
"The reality is that the market speculators have let lose again as they did last summer," an AA spokesman told Sky News.
"The price of oil is artificially high as the speculators scurry from currencies into commodities in the hope of making profits.
"The problem is they are gambling on what is going to happen in six months' time whereas the issue is what is happening now - we are in the middle of a recession and demand is low."
Consumers, he pointed out, would be spending more on petrol, rather than spending on the high street, where experts believe the recovery will begin.
"Traditionally, people cut back on entertaining and spending, then they delay spending on big purchases such as sofas and it's only in the later stages that they cut back on driving and petrol.
"Imagine that all across the country and you have the potential for a real problem - if people are cutting back that much, where is the recovery going to come from?"
The AA is appealing to the Government to hold off any further fuel duty rises to boost economic recovery
Prices hit a peak of more than 132.9p a litre last summer
The ?1 mark was reached on Monday and prices at the pumps have now risen 4p a litre in the past month, the motoring organisation says.
A poll of nearly 15,000 drivers conducted last month found that 26% are using their car less, 12% have reduced spending elsewhere and 17% are motoring and spending less.
For those spending less, the main areas for cutbacks are eating out, followed by film, theatre and entertainment.
High prices are particularly hitting those in the skilled service and manual workers in the C2 socio-economic group.
Regionally, people in south west England, Wales and the West Midlands were cutting back on spending the most, while Londoners - who tend to have low annual mileage - were least hit by rising fuel costs.
"The reality is that the market speculators have let lose again as they did last summer," an AA spokesman told Sky News.
"The price of oil is artificially high as the speculators scurry from currencies into commodities in the hope of making profits.
"The problem is they are gambling on what is going to happen in six months' time whereas the issue is what is happening now - we are in the middle of a recession and demand is low."
Consumers, he pointed out, would be spending more on petrol, rather than spending on the high street, where experts believe the recovery will begin.
"Traditionally, people cut back on entertaining and spending, then they delay spending on big purchases such as sofas and it's only in the later stages that they cut back on driving and petrol.
"Imagine that all across the country and you have the potential for a real problem - if people are cutting back that much, where is the recovery going to come from?"
The AA is appealing to the Government to hold off any further fuel duty rises to boost economic recovery