The greater part of the fuel used is gobbled up by companies sending their reptiles and other company personell around the country. They get a considerable amout of that tax back.
As for the price, too many softies will just keep using the car for the sake of it. In my village this afternoon i walked the 3/4 mile or so to pick the kids up. The woman who lives next door DRIVES, by the time she has got through the crush of traffic I was home first.
Add to that all the people who seem to relish a 1-2 hour commute for work,they have to buy the fuel. I don't understand the commute thing. Thats life time you are giving away for free. It takes me 10minutes to get to work, its one of the reasons i work there, its certanly not for the company .
Short answer is were fcuked as far as the price of fuel goes. Now its gone over a pound a litre it won't stop till it hits a new hot spot price that gets the press interested, but all that will happen is the chancellor will put back the date of his tax hike to avoid the spotlight, like the August hikes we have now that pass un noticed.
Our political system is corupt and selfserving, controlled by the media and large cash 'donations' from large corporations. Untill the whole stack of bile collapses under its own corruption we are stuck.