Cool, I love the fact that even on New Year's Day we can still find time to argue amongst us.
It's quite heartwarming to know really.

Mark

My work is 30 miles away from my house, therefore I have to drive a minimum of 300 miles a week. It's usually 500 miles as I have to visit customers (although I get expenses on visits to customers but the governments figures don't cover the actual cost of fuel).

I do buy less petrol but then again I have a diesel car. However I cannot buy less fuel as I'd be sacked for not going to work (eventually)

I therefore claim the last laugh

Then I assume you've heard of the concept of 'inelastic demand' and are being over simplistic simply for the sake of it.

Jon

I was also about to join in with this.

As far as my puny non-economic-degree brain canunderstand it: petrol is "inelastic": the price does not change demand very much, because of its fundamental importance. Companies (and in the UK, the goverment) can rape the consumer for as much as they think they can get away with but the amount of petrol used will not drop by a large fraction because of that price increase.

Yes, some people can and will drive less. But in most cases, for people and businesses, there is a minimum amount of driving they must do in order to get to work/deliver the goods etc. You've got to be joking me if you think that the British public transport system can take up the slack. For most, it would be at least as cripplingly expensive as driving is at the moment, but with a 20 minute walk at either end so they can get an hour less sleep too.

I assume koli can afford to buy us all new efficient cars so that the continuing rise in prices won't obliterate our disposable income and cut into our daily necessities.

They will use public public transport... which uses petrol/diesel so demand there increases!

Or alternatives...

I use my car less today than I used to, and I hardly ever use public transport. If I am only travelling a couple of miles and I don't have to take any luggage with me, I go by foot or take my bicycle... Next up would be trains for long distance, which are generally electric.

I have indeed, but even if the there is an inelastic demand it doesn't change the fact that you will buy the less of something if price of it goes up. It only means that a change is non linear and the effect of the fall in consumption does not have proportional impact on the price.

And that is only the one side of it. Other side is that there will be other suppliers entering the industry if they can earn above average profits. So we are talking more investment in the exploration, extraction and refinement which will effect the price. Nick has suggested some other alternatives to deal with higher petrol prices.

Also prices will correct eventually, no price can be manipulated for long as was demonstrated by house prices in the UK or the crude oil prices in the world. Crude oil went from $200 to as little as $40 in last two years if I remember correctly.

I agree but I am pretty that you do some other discretionary driving too, I know that most people do. Americans like to do "a driving holiday" for example and when the price is high they will consider not doing them.

Thats no excuse for being rude to people. This doesnt claim to be an economic experts forum, its a meeting place for people to discuss allsorts - whether their views are correct, incorrect, factual, or in the case or JV a load of rubbish... But seriously, if you want to express an opinion then feel free but dont put others down in the process just because you think you know better. If you really want an accurate and indepth discussion on economics where everyone is an expert on the matter then maybe this isnt the place.

Fair enough Veato, you are probably right.

I just winds me up that people with no knowledge are arguing with me and telling me that my knowledge is basic. I spent three years studying something that they read about once a week in a Daily Mail. There are some utterly incorrect perceptions expressed in this thread. I know that not everybody knows about everything but I don't go around telling programmers what is right and wrong because I know nothing about programming.

I try to correct people when I know something about the topic but admittedly it is mostly futile. Oh well...

Thats fair enough and by the same token it wrong for someone to be rude regarding your opinion. I love a good debate but lets keep it civil folks (look at me.... forum police hahahaha!)

What, you mean like going to the shops to buy food and clothes? That sort of thing?

Nick, I already downsized my car. I did it when petrol hit a pound a litre and it was looking like it might cost me £100 to fill the old car up. Now I fill it up for £30, and have possibly doubled my MPG. But I can't afford to just go changing my car to save more money. My world isn't like that.

Hopefully, my future world will mean I can work from home again, telecommuting. Then again, I still want to be able to drive out places, because my photographic work will be very dull if I'm restricted to how far I can walk. Public transport will be all but useless for that, because there aren't many buses or trains that go where I'm likely to want to be when I want to be there. If that makes sense.

As for economics, well, I know nothing. I admit it. I'm just a worker who pays taxes, and wonders why those who run this country have managed to cock it up so royally.

That Probably describes most of us.

I drive to the supermarket (cheaper than the £4 it costs for delivery), I drive to gigs (as I have equipment to carry) & I drove to Norwich (as the part I wanted to get to is difficult by rail with a small child, rail fares are also a lot more expensive).
I do drive to my holiday home but there's no other way of getting there.