I have recently reviewed the DfT's latest transport appraisal guidance, WebTAG Unit 3.5.6, which presents the resource costs of fuel to be used for transport project appraisal. It is notable that WebTAG suggests that fuel costs for all years from 2009 will be lower, in real terms, than in 2002. This assumption is amazing and does not reflect the substantial increase in oil prices from around US$25 in 2002 to over $60 today. Furthermore, WebTAG assumes that there will be no increase in real...
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