I changed my car last year from a 3.5L V6 saloon that gave me approx. 10.5L per 100K, to a 2.2L Peugeot turbo diesel wagon that gives me approx. 7.5L per 100K.  This is a saving of about 30% volume in fuel.  I estimate that with the incresed m.p.g set against the diesel fuel distance license, I'm saving the equivalent of approx. 70c per litre of petrol.  A full tank used to cost me  $120 + whereas it now costs just $70 +, although it is a slightly smaller tank.

Given that about half of fuel cost is tax and I do about 30K per year, the government will be taking about $1,400 per year less from me (sshhh!).  I'm not alone by any means.  Heaps of people are doing the same - moving to diesel, downsizing engines and cars.  Add that to the fact that modern cars of any type are much more fuel efficient than those of even a few years ago and you have a trend that's going to reduce revenue dramatically.  How long will we get away with it?

Governments don't reduce taxes voluntarily and I'm quite sure that this situation will provoke a response.  Government and green lobby exhortations to minimise fuel and power consumption in order to reduce greenhouse gases look likely to produce a double-whammy of punitive tax hikes for us mugs who'd like to comply.  Greenhouse emmision taxes on gas and electricity of course with petrol taxes to follow.  The problem is that the more energy we save, the harder the government is likely tax us.  No carrot and stick here.  Just a big club to beat us with.  I suggest that just as we're doing our best to cut costs, fuel consumption, greenhouse gases and whatever, the government should be encouraged to cut it's costs in proportion to the drop in revenue that result from our changing behaviours.

Or am I being selfish?