Green lobby renews call for oil windfall tax

May 24 2008 by Peter McCusker, The Journal

OIL prices were well off their peak of US $135 a barrel on Thursday with US sweet light crude falling back to close at $132 yesterday.

Oil prices have risen about 40% this year, as soaring demand from emerging economies looking to power their growth has been exacerbated by supply fears and speculation on the world markets.

This has led to renewed calls from the green lobby for the Government to pump the extra cash from fuel duty into reducing our dependency on fossil fuels. Friends of the Earth has also called on politicians to impose a windfall tax on oil firms and use the revenue to improve energy efficiency.

Meanwhile, British Airways boss Willie Walsh told journalists on a press trip to promote the UK carrier’s new OpenSkies venture that airlines will now struggle to offer the cheap fares to which UK travellers have become accustomed.

Friends of the Earth’s head of campaigns, Mike Childs, said: “Rising fuel prices, increasing concern about climate change and fears about fuel security highlight the urgent need to wean ourselves off our addiction to oil.

“The Government must use increasing tax revenues from rising oil prices to invest in public transport, promote renewable energy and improve energy efficiency in our homes. We need a green industrial revolution to develop a low-carbon, safe and affordable future.”

The charity has called for cash to be used to make the homes of the “fuel poor”, people who spend at least 10% of their income on energy bills, more energy efficient.

It also wants the Energy Bill to be changed so energy companies pay a premium for energy from renewable sources, both from business and domestic customers.

The calls come ahead of discussions in Brussels next week on new regulations for cars’ fuel efficiency.

Friends of the Earth wants members of the European Parliament to introduce tough new rules, with new car carbon emissions cut to 80g per kilometre travelled by 2020.