With the government taking most of the blame (38% of those polled placed the blame on Whitehall), it seems that few people acknowledge the fact that increasing consumption of a finite resource sold on a volatile world market is the real reason for high prices at the pump.

Of course, taxation makes up a significant percentage of the retail price of fuel, which is something that governments do have influence over. To this effect, Conservative party leader David Cameron has proposed a sliding scale for value added fuel tax which decreases as crude oil prices increase, shielding the consumer from global oil market shocks.

However, taxation is ultimately irrelevant to the long term future of oil prices, as prices will inevitably rise as demand in an increasingly affluent world continues to outstrip increase in supply. It is in this respect that Western governments need to face up to the necessity of implementing long term policies to reduce and eventually eliminate the world economy’s dependence on oil.

Solutions for the future?

Reducing, or indeed increasing fuel taxes won’t achieve this, and neither will drilling for more oil or encouraging people to dive fewer miles in more efficient cars.

The only real solution is the development of technology that can offer similar practicality to fossil fuels and provide this to billions of consumers at a low price (in many places a pint of oil still costs less than a pint of beer), and this technology will only be developed and become viable as oil prices increase, letting the market do its work by reducing the comparable cost and risk of new investments.

Perhaps, therefore, the best thing that governments can do in this case is to leave the issue alone – governments have a poor track record in successful market intervention, with many current drilling and tax reduction proposals likely to only prolong the pain and increase damage to the environment.

The British are right to blame their government, although maybe we should blame them for doing too much, rather than too little?

Other posts about oil prices:

• “McCain Credits Bush for Drop in Crude Oil Prices, White House Basically Replies: ‘Wasn’t us.’
• “Bush Administration Proposes ‘Fire Sale’ of Rocky Mtns. For Oil Shale Development”
• “New McCain TV Ad Blames Obama for High Gas Prices”

Photo Credit: j-cournelius via flickr Under a Creative Commons License

It’s disturbing that you could face fines for doing something that’s both a money-saver and good for the environment. Still, I thought it might help any would-be biodiesel home-brewers out there to know where to find more information about the laws that might apply to you. Here are a few sites I discovered that might come in handy:

Alternative Fuels & Advanced Vehicles Data Center: This page on the U.S. Department of Energy’s Website gives a state-by-state summary of incentives and laws affecting homemade biodiesel, other alternative fuels and alternative fuel-powered vehicles.

The California Center for Sustainable Energy: According to this site, “The first 400 gallons of home-made biodiesel is exempt from federal taxation and anything afer 400 gallons is subject to normal federal tax rates.” The center also advises home biodiesel-brewers to check with their state to see if state fuel taxes apply to them. You’ll also find lots of good links here on home biodiesel production, equipment suppliers and biodiesel fueling locations in the U.S.

National Renewable Energy Laboratory: While this site doesn’t specifically address biodiesel tax policies, it does feature a large number of informative publications about biodiesel production, handling, use, quality, stability, compatibility, emissions and fleet evaluations.

Other sites with lots of information about all aspects of biodiesel include the National Biodiesel Board and its companion marketplace site, AllThingsBiodiesel.com, the National Biodiesel Foundation, an article on “Greasoline” at the Journal of Young Investigators and, of course, Wikipedia (here and here).

Image credit: Mejidori at Wikimedia Commons, released into public domain.