Fuel prices and the economy

[obi_waynne]

How much of an effect do you think fuel prices have on the economy? Are fuel prices just a symptom of the current economic climate or do high fuel prices fuel a slow up in the economy?

The recession started when fuel prices hit a record high, the recovery has faltered since fuel prices crept back up.

How much of our economy is dependent on transport then?

 

[pgarner]

high fuel prices slow up the economy,
if its dear you less likely to go anywhere and spend the money.

how dependent is the economy on transport - very how does anything get to the shops or your house ?

 

[thexav]

It is all tied in very closely. If people aren't going out then they are not going to spend money. Goods cost more to ship around as well.

I know people who are only going to the supermarket every 2 weeks now to save fuel.

 

[manracer82]

the government are rakin in billions £ on fuel about 2/3 of what you pay at pump goes tax for them thats why the prices are biased towards increases and slow to come down when oil price drops

 

[Simonedi]

I think fuel prices are high simply because of the the government wanting to maximise the income generated by tax. While we are digging out a massive pit o debt, i cannot see things going down.
Though i would not hold much against the forecourts who seem to bear the brunt of the media anger, i used to work in a filling station and i can tell you that even a supermarket linked filling station makes more profit off someone buying a sandwich and bottle of coke than someone buying 30l..