Discussion
d gas station owners! Oil fell again yesterday but we were due 6in of snow last night so the price of gas went from 1.69 per gallon to $2.15 at every gas station in town. 
ralphrj said:
Some people have short memories (with the exception of mjb1!).
The Government introduced a fair fuel stabiliser in the 2012 budget.
If the average price per barrel of oil is high then the government levies additional tax on the profits oil and gas companies and uses this to offset cuts or freezes in fuel duty.
However, this also works in reverse so if the price per barrel of oil is low then the taxes on oil and gas companies are cut and fuel duty is increased.
For this to happen a trigger price has to be met. This will be assessed on the first working day in February and is based on 2 figures:
1. The average daily dollar oil price (per barrel) in the three months immediately prior to the date of assessment, converted to sterling using the average daily Bank of England exchange rate across the period.
2. The average daily dollar oil price (per barrel) in the week before the date of assessment, converted to sterling using the average daily Bank of England exchange rate across the period.
When it was introduced the trigger price was £45 per barrel but may have been revised by the OBR since then. At the time of writing the oil price is £34 per barrel.
So I would expect fuel duty to rise automatically in the budget unless the Chancellor delays any rise until after the election.
So you guys take it in the ass either way. The Government introduced a fair fuel stabiliser in the 2012 budget.
If the average price per barrel of oil is high then the government levies additional tax on the profits oil and gas companies and uses this to offset cuts or freezes in fuel duty.
However, this also works in reverse so if the price per barrel of oil is low then the taxes on oil and gas companies are cut and fuel duty is increased.
For this to happen a trigger price has to be met. This will be assessed on the first working day in February and is based on 2 figures:
1. The average daily dollar oil price (per barrel) in the three months immediately prior to the date of assessment, converted to sterling using the average daily Bank of England exchange rate across the period.
2. The average daily dollar oil price (per barrel) in the week before the date of assessment, converted to sterling using the average daily Bank of England exchange rate across the period.
When it was introduced the trigger price was £45 per barrel but may have been revised by the OBR since then. At the time of writing the oil price is £34 per barrel.
So I would expect fuel duty to rise automatically in the budget unless the Chancellor delays any rise until after the election.
There are some states here considering putting a fuel duty rise on the ballot next year. 'mericans won't stand for it in most places though. Environmentalists are getting twitchy because cheap gas = more huge V8's on the road. On the flip side though the frackers can't get the stuff out of the ground for $50 a barrel so it might put paid to them which would please the greens.
Well gas here in the Midwest is at a steady $1.42 a gallon at the moment, bonkers cheap. There have been isolated cases of it hitting $1 but $1.42 is the best I've seen with my own eyes. Lowest prices for more than 10 years.
Average UK price for unleaded seems to be 102p per litre so we're actually paying less for a gallon than you guys are for a litre.
Let the V8's roll!
Average UK price for unleaded seems to be 102p per litre so we're actually paying less for a gallon than you guys are for a litre.
Let the V8's roll!
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