RE: The Only Way Is Up
Friday 21st September 2007
Pound a pumpThree tax rises are set to affect the price of unleaded, beginning with a 2.35p increase in fuel duty which comes into force on 1st October. According to the AA, when combined with the rate rise from December last year, the new cost of petrol means an average two-car family will be more than £100 a year worse off.
The Only Way Is Up
Petrol prices are set to creep ever closer to £1 a litre
Pound a pump
However, the October rise is just the first of three scheduled increases. A further 2.35p is due to be added next April, with another 2.11p rise slated for April 2009. The current average price of a litre unleaded is 95.2p.
The escalations are necessary because of fluctuations in the prices of a barrel of oil. When the Chancellor calculated the duty to be imposed on petrol, oil was priced at $57 a barrel. Thanks to volatility in oil-producing markets and some particularly nasty weather causing oil-rigs to close for safety reasons, the price of a barrel is now around $83 today.
Discussion
Thieving b*stards. 
Whenever I've seen Brown interviewed about fuel duty, he's always wriggled around the question. Irrespective of what the price of oil is doing, we pay a massive amount of tax on fuel. And the people it hits the hardest are those on low- and middle-incomes who need their cars to get to work every day, to pay their taxes. 
Maybe we can hope the tax increases might be put on hold for 'political reasons'?
Whenever I've seen Brown interviewed about fuel duty, he's always wriggled around the question. Irrespective of what the price of oil is doing, we pay a massive amount of tax on fuel. And the people it hits the hardest are those on low- and middle-incomes who need their cars to get to work every day, to pay their taxes. Maybe we can hope the tax increases might be put on hold for 'political reasons'?
Over the last few years, i've always said, no matter the price im keeping my car. I enjoy my car, it drives really nicely, its got good power.
But its got to the point now, where i'm spending all my money on fuel. Its crazy, why do we have to have such tax on fuel?
Now im going to have to buy something boring which is a bit more frugal, which will probably go wrong because i can only afford a banger, and then i'll bankrupt myself trying to repair the banger.
I just want to keep my car :-(
And thing is, I need to use my car for work. i have no choice!
But its got to the point now, where i'm spending all my money on fuel. Its crazy, why do we have to have such tax on fuel?
Now im going to have to buy something boring which is a bit more frugal, which will probably go wrong because i can only afford a banger, and then i'll bankrupt myself trying to repair the banger.
I just want to keep my car :-(
And thing is, I need to use my car for work. i have no choice!
Edited by Fordo on Friday 21st September 12:49
"The escalations are necessary because of fluctuations in the prices of a barrel of oil. When the Chancellor calculated the duty to be imposed on petrol, oil was priced at $57 a barrel. Thanks to volatility in oil-producing markets and some particularly nasty weather causing oil-rigs to close for safety reasons, the price of a barrel is now around $83 today."
Total bo
ocks!! What has the price of fuel got to do with TAX!
When has the Chancellor ever cut TAX when the price of fuel has gone down? - NEVER.
We need to start voting these people out of power...
Total bo
ocks!! What has the price of fuel got to do with TAX!When has the Chancellor ever cut TAX when the price of fuel has gone down? - NEVER.
We need to start voting these people out of power...
Bizzle said:
How can the Labour Government justify such an increase in fuel prices?
In 1996 the average price of unleaded fuel was 55.8p per litre.
In 2007 the average price of unleaded fuel is 95p per litre.
That's 40 pence in 10 years or 4 pence per year!!
What was the price of a £400,000 house in 1996??........In 1996 the average price of unleaded fuel was 55.8p per litre.
In 2007 the average price of unleaded fuel is 95p per litre.
That's 40 pence in 10 years or 4 pence per year!!
Probably not much more than £120,000.............
I agree the tax rate is ridiculous though, but the chancellor has a captive market like smokers............
Regarding the Government, whoever they are reducing tax on fuel is a non starter unless something dire happens. What the Government has here is a Cash Cow which in business, a cash cow is a product or a business unit that generates unusually high profit margins: so high that it is responsible for a large amount of a company's operating profit. This profit far exceeds the amount necessary to maintain the cash cow business, and the excess is used by the business for other purposes.
By incresing the tax year on year or even month on month progressive governments have now backed themselves into a corner at which point they are now unable to reduce or remove fuel tax. This tax and our beloved road duty were designed to be used to provide an improved highways infrastructure, however you ask Mr. Brown how much of this revenue is destined for this sector, the answer is probably less than 1%. Do not belive the figures imparted by the government when they talk of investment in bio fuels. At present the amount of cash given to the farmers to produce bio crops far exceeds the benefit in bio fuel at this time. And I can only imagine that once the ratio of bio fuels exceeds that of fossil fuel then the tax shift will once again start.
I’m not sure fully how much tax the litre of fuel in your tank has produced by the time you’ve gone down the road, though you can rest assured it’s more than the fuel you’ve just burned. There are taxes on extracting Oil, though this has reduced from the North Sea fields. Tax on the manufacturer in generating the Ron 98 from crude etc. etc. down to us the driver putting it in the tank.
So once again the easy target is the motorist and we as a world dependant on the use of the internal combustion engine are faced with paying up or going no where.
By incresing the tax year on year or even month on month progressive governments have now backed themselves into a corner at which point they are now unable to reduce or remove fuel tax. This tax and our beloved road duty were designed to be used to provide an improved highways infrastructure, however you ask Mr. Brown how much of this revenue is destined for this sector, the answer is probably less than 1%. Do not belive the figures imparted by the government when they talk of investment in bio fuels. At present the amount of cash given to the farmers to produce bio crops far exceeds the benefit in bio fuel at this time. And I can only imagine that once the ratio of bio fuels exceeds that of fossil fuel then the tax shift will once again start.
I’m not sure fully how much tax the litre of fuel in your tank has produced by the time you’ve gone down the road, though you can rest assured it’s more than the fuel you’ve just burned. There are taxes on extracting Oil, though this has reduced from the North Sea fields. Tax on the manufacturer in generating the Ron 98 from crude etc. etc. down to us the driver putting it in the tank.
So once again the easy target is the motorist and we as a world dependant on the use of the internal combustion engine are faced with paying up or going no where.
Wacky Racer said:
Bizzle said:
How can the Labour Government justify such an increase in fuel prices?
In 1996 the average price of unleaded fuel was 55.8p per litre.
In 2007 the average price of unleaded fuel is 95p per litre.
That's 40 pence in 10 years or 4 pence per year!!
What was the price of a £400,000 house in 1996??........In 1996 the average price of unleaded fuel was 55.8p per litre.
In 2007 the average price of unleaded fuel is 95p per litre.
That's 40 pence in 10 years or 4 pence per year!!
Probably not much more than £120,000.............
Mr Whippy said:
Thing is, people won't drive less, they'll just spend less, and the economic hurt the country is currently feeling will continue to get worse.
Feeding money into the treasury is the last thing we need, unless it's to bail out lots of dodgy lending.
Dave
very good point. I'm actually skimping on food at the moment to put fuel in my tank. And i havent had a beer in ages!Feeding money into the treasury is the last thing we need, unless it's to bail out lots of dodgy lending.
Dave
malc 21 said:
hitting the drivers yet again when will it stop (hahaha fat chance as their making money hand over fist off us) some think needs done about it but what can we do ????????
and it's the petrol company's with all their profits too.
mal
Can't blame petrol companys, its all gov't. Have you noticed the fewer petrol stations around recently and how all the modernised ones have more space for coffee and snacks. They make more money off coffee and tat than fuel.and it's the petrol company's with all their profits too.
mal
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