It has begun.......

[Peaked2Soon]

The decision of the government to withold a planned increase in fuel duty may come to be seen as the first direct effect of PO on policy.

Of course, for now, they are saying that it's a reaction to a short term spike in oil prices. We know different. This spike is never going away.

Labour have been forced once before to cut fuel duty due to public pressure. On that occasion the protests were more about the level of duty itself rather than the underlying crude price. Now the pressure is coming from the oil price itself.

I'm expecting public pressure will soon force another cut in duty, probably this winter as the oil price moves higher in response to winter demand.

Over the next few years this can only go one way and it's going to be very interesting to see what Labour cuts in the way of public spending in order to pay for the reduced fuel duties.