Recently The Scottish Sun has been campaigning for lower fuel prices, a crusade which enjoys overwhelming support from Scotland’s business community. The great thing is – it seems to be working.
Last week, several of Britain’s top supermarkets announced cuts to the cost of petrol at filling stations across the country.
This comes in response to a dramatic fall in the global price of oil. At the height of summer, the cost of crude oil was approaching $120 a barrel – today that same barrel would cost less than $70.
When you look at it like that, the 1p cut that was announced last week seems like nothing more than a drop in the ocean.
Even the prediction from Danny Alexander that prices could fall by as much as 8p by the New Year doesn’t seem that impressive.
But the cost of crude oil isn’t the only factor determining the cost of fuel. You’ve also got to factor in the cost of refining the oil, transporting it to petrol stations, and selling it at a profit.
Then there’s fuel duty and VAT – which, between them, account for more than 60 per cent of the cost of each litre of petrol. British fuel is the highest taxed in Europe.
Tax on fuel is a personal bugbear of mine, but the Government has a deficit to eliminate and a debt to pay down, so demanding that they reduce this tax can wait for now.
Instead we should take our blessings where we find them and rejoice that petrol prices are no longer rising.
The fall in prices at the pump is good news, but you’d be forgiven for thinking otherwise. You only have to glance at a newspaper in the past week to see horror stories about the damage that falling oil prices will have on Scotland’s currently-thriving oil industry.
But we should bear in mind that cheaper fuel will have a positive effect on the rest of the Scottish economy – it will just be less dramatic because the benefits will be spread out.
Cheaper fuel will be great for consumers. With family budgets becoming increasingly stretched, having a little more money in your pocket is certainly welcome – particularly at this time of year.
But the benefits to business are even greater.
A huge number of sectors, from construction to haulage to transport, use a huge amount of fuel when carrying out their work. Companies the length and breadth of the country could save hundreds or thousands of pounds every month. A healthy balance sheet creates job security for employees.
It isn’t unheard of for companies to be driven out of business entirely when the costs of simple things like fuel get out of hand and render the entire company unprofitable. Low fuel costs can provide much-needed respite for businesses that are feeling the pinch.
Some brave entrepreneurs may even seize the opportunity to expand.
But there aren’t many sectors of our economy that benefit more from low fuel costs than aviation.
As the world’s economy rebalances and eastern countries like India and China become key trading partners, it becomes increasingly important to improve our links with these nations.
Academic studies have shown that establishing direct air links is one of the best ways to enhance international trade.
So there are huge benefits to having a stronger Scottish aviation sector.
There is demand for Scottish products all around the world – and meeting that demand could create economic growth.
This week we learned that passenger numbers flying from Scottish airports increased by 11 per cent in November, so our aviation sector is already in rude health. Falling oil prices should help it to grow even more.
Lower fuel costs are good news for Scotland – they will help our entrepreneurs who are the lifeblood of our economy, and they can help us to build partnerships with the rest of the world.
At this time of year it’s nice to be able to celebrate some good news.
Whisky Demand Fuels Scottish Pride
I was intrigued to see a report on a fresh Scottish business success story happening in the Far East.
It seems that Scottish exports to Singapore have doubled in the last five years – hitting S$500 million in 2013 – as our companies increasingly look to the sovereign city-state and island country as a base for doing business in exciting new regional markets.
It’s no coincidence that the economy of Singapore is known as one of the most innovative, competitive, and business-friendly in the world.
According to a new report, at least 60 of our own brightest businesses have set up in Singapore – which also just so happens to be the world’s third largest export market for whisky.
Among those is Scottish firm C&C Group which has launched an already popular hybrid there – a whisky and beer blend under the Tennent’s brand.
If you think that us Scots like our whisky, then it’s interesting to note that Singaporeans are an even thirstier bunch than us; while the US is the largest importer, they are nowhere near Singapore in terms of consumption, annually imbibing the highest volume per person.
In fact, on average, they get through 12.76 bottles of whisky per person per year – no mean feat.
Now, before you start assuming that the country is in the grips of a massive alcohol problem, the country’s consumers have simply become progressively more educated and discerning when it comes to their favourite tipple, and are loving seeking out ever more unique whiskies. It’s essentially become a high quality, aspirational drink for young professionals.
Much like the drink itself, it’s refreshing to see a product that’s so redolent of our culture and history becoming a byword for international sophistication.
It Made Me Laugh: Deck the Beards
I had to laugh when I saw the latest festive trend. While everyone and their gran now proudly sports a Christmas jumper at the merest hint of December, some have gone that little bit further.
With massive beards now an all-year-round fashion staple for the on-trend 18–40 male, it was only a matter of time before someone started accessorising them for the festive season. Indeed, a London advertising agency, Grey London, has done just that.
Now young wannabe Santas have the opportunity to add ‘Beard Baubles’ to their fuzz, basically turning the lower half of their face into a Christmas tree.
Now, I’m no fan of excessive hair at the best of times, but proceeds from this are going to a great initiative – a melanoma awareness charity called Beardseason – so get decorating those faces!
It Made Me Weep: Driver Theory Test Record
It was incredible to read this week that a learner driver had suffered the dubious honour of breaking the Scottish record for theory test fails.
The 22-year-old Glasgow man sat the test for a 36th time, spending a total of £1,147 on the effort, making him the worst since records started being kept 10 years ago.
While the good news is that he passed on the 37th attempt, it still leaves the worryingly formidable challenge that is the practical test.
Now, the theory test essentially records awareness, recognition of road signs, and ability to predict situations before they arise – in other words, basic competency for drivers. I don’t want to be rude, but I don’t fancy his chances when he actually gets behind the wheel.
