Bus fares and package holidays to get cheaper?
Well so far 2015 has got off to a great start. Petrol prices are down, even energy prices are coming down and now the Treasury is intervening to get package holidays and bus fares to become cheaper too. Get in.
Chief Secretary to the Treasury Danny Alexander has written an Official Letter to five major bus companies, package holiday operators and Mayor of London Boris Johnson urging them to ensure prices are dropped in line with the fall in crude oil prices. After all, these same companies were the first to up prices in recent years…
The intervention by the Treasury raises the possibility of families across the country being able to take advantage of cheaper package holidays in time for the summer holidays, with Mr Alexander saying it was said it was "only right" that companies enjoying boosted profits from plummeting oil prices passed on "every last penny" to the public.
"With fuel prices dropping across the country it’s right that the full benefits are passed on," said Mr Alexander as he revealed the latest series of interventions by the Treasury. "Falling oil prices are like a giant tax cut to the economy. But the positive effect will only be felt if the oil price falls are passed on," he finished, incisively.
"While drivers are already seeing the cost of filling up the car come down, the millions of Britons who use the bus are still paying what they did a few months ago. Consumers have suffered the pain of high oil prices, it’s only right that companies and organisations do all they can to pass on as quickly as possible every last penny of oil price falls.”
Of course, the Treasury cannot force private companies to do anything, much less set their prices. However, the recent pressure on domestic energy companies has led to the first company cracking and agreeing to reduce prices, so fingers crossed we can soon see our money going even further this year.