Drivers confused about diesel tax laws

North West drivers confused about diesel tax laws

Confusion about new taxes on diesel fuel is widespread among drivers in the North West and is leading to sales declining across the UK, according to new research.

Almost nine in 10 (85%) motorists in the region do not know the new law in relation to new diesel vehicles, which comes into force next month (April 2018).

New diesel vehicles will be subject up to £500 more in tax if they fail to meet the latest pollution standards. The law only applies to newly registered diesel cars on or after 1 April, but many drivers in the region either seem to think the rules apply to all diesel vehicles or are unaware of the taxes altogether.

The research by Confused.com suggests the confusion about diesel goes even further than the latest tax laws. In fact, more than two fifths (44%) of drivers in the North West say the messaging around diesel is unclear. And this lack of clarity seems to be clouding drivers’ choice of future car, as nearly six in 10 (59%) say they wouldn’t consider buying a diesel vehicle. The new taxes are also a key deterrent, with almost three in 10 (28%) blaming them for their decision.

However, it isn’t just taxes that are making diesel cars unaffordable to run, as the cost of diesel itself has ramped up significantly over the past year and reaching an 18-month high across the UK in January 2018, according to the Confused.com fuel price index. In particular, drivers in the North West are paying 0.7p/l on average more for diesel than this time last year, while petrol has increased just 0.1p/l in the 12 months. Overall, prices across the UK have risen over the year, with the average country-wide cost of diesel now 123.1p/l, and 120.4p/l for petrol.

Even though registrations of diesel vehicles in the UK are down, the number of pure electric vehicles being registered has dropped by more than a third (34%) in the past year too.

Despite this, electric seems to have gone up in drivers’ estimations with almost half (48%) of UK motorists saying they would consider buying an electric vehicle as their next car.

However, for those who remain unconvinced, almost a third (30%) blame the lack of electric charge points, while one in five (21%) say they are too expensive to buy and one in seven (15%) do not feel confident in their range.

Confirmed plans to ban the sale of all new petrol and diesel vehicles from 2040 suggests drivers can expect fuel-related penalties and incentives by government and manufacturers to ramp up over the next few years.

Amanda Stretton, motoring editor at Confused.com, says: “Drivers in the North West are clearly confused about the messaging around diesel vehicles. It's no wonder motorists in the region are not up to speed with the latest laws.

"As we head towards 2040, when the sale of new conventional diesel and petrol vehicles will be banned, we expect drivers will see numerous incentives and penalties being introduced. Whether such measures will encourage take up of more environmentally friendly car-types remains to be seen”