Latest Statistics Show
Motor Fuel Sales Down by 10%
Reports just published indicate that the Irish demand for motor fuels is down by some 10%. This means that people are using their cars less and less.
Is this surprising? No it is not, not only do you have crude oil prices inflating due to the uncertainty of supply caused by the "Arab spring", but the Irish Government saw fit to add in 2008 and extra 8c per litre to the already massive excise duty, and on the top of that again, there is a 5% carbon tax. On that again you have increased VAT and other taxes.
I would say that the Irish Revenue is into a situation of "diminishing returns". You cannot just TAX your way out of financial difficulties. That causes an immediate restriction of the flow of money. It is like damming a river, the land downstream will simply go arid.
With fuel costs soaring, taxes increasing, money and jobs becoming scarce, we will need to find some other way to run cars. Maybe it is back to bicycles and the ass and cart?
The squeeze is getting so tight that the entire economy is shrinking - which means less and less taxes will be available to government.
I have no knowledge of economic science - but you don't need rocket science to figure this one. I bet those that bought 4x4 gas guzzlers in the good times are regretting their choice now!