Like everyone else, I have had enough of rising fuel prices, especially as I live in a rural Cambridgeshire village.

How to deal with it is a complex issue which the government is currently grasping with. On the one hand, a fuel duty stabiliser might seem an attractive option, but it is a short-term fix as it would work by cutting fuel duty at a time of rising pump prices – as well as increasing duty when prices fall.

Boris Johnson is keen to see this system implemented. David Cameron, on the other hand, is being more cautious, despite a Conservative election manifesto promise to look into a “fair fuel stabiliser”.

Today I have been calling the national media to promote a press release on behalf of Green Alliance and talked through their concerns about a fuel duty stabiliser. They commissioned a report with the Policy Studies Institute which concluded that a fuel duty stabiliser would leave a huge fiscal black hole, resulting in more taxes as it could cost public finances as much as £6 billion in lost revenue. You can read the full report on the Green Alliance website. This is what they say in their press release:

New report reveals a Fuel Duty Stabiliser could cost the public finances as much as £6bn in lost income

According to the research commissioned by Green Alliance a fuel duty cut to bring pump prices back to December 2009 levels would cost the taxpayer almost £6bn in lost revenue.

With a clear upward long-term trend in crude oil prices, going down this route would commit the Government to cutting fuel duty by ever increasing amounts whilst handing oil companies and petrol retailers the chance to raise prices in the knowledge that the taxpayer would pay the difference.

Chris Hewett, tax expert at Green Alliance, said: “It’s fiscally irresponsible to think the UK government can stop the price of oil going up – cutting fuel duty means other taxes have to go up or further spending cuts need to be made. We need to adapt to this world of high oil prices by focusing on modernising our transport system”.

Roger Salmons, Senior Research Fellow at the Policy Studies Institute at the University of Westminster said: “It is possible to vary fuel duty to flatten out the worst of the price volatility, but to avoid reducing revenue overall it can only smooth out the rising trend in prices”.

Like many motorists, I long for an an alternative affordable and reliable form of transport other than the car. This is the issue which the government needs to address. Where is our long term transport strategy to get cars off the road?