Reduction in Petrol Duty ?
Discussion
Firstly, apologies if I'm being dump, or missing something (possible!), but several weeks ago our beloved Chancellor advised there was going to be a 5p reduction in fuel duty, I think with immediate effect ?.
Well certainly in and around my area, Kent and Medway, I've not noticed any reduction in fuel prices for months, so as per usual, are we just being shaf*ed again by the fuel/petrol companies, and are they just adding to their endless profits by not passing on any of this duty cut ?.
More to the point, how are they allowed to get away with this, and yes I know they're pretty much a law unto themselves, but my post is intended as a serious one, and not sarcastic one etc in any way, and I sure I'm not the only one who finds this endless frustration and annoyance along the feather and stone scenario. Thanks.
Well certainly in and around my area, Kent and Medway, I've not noticed any reduction in fuel prices for months, so as per usual, are we just being shaf*ed again by the fuel/petrol companies, and are they just adding to their endless profits by not passing on any of this duty cut ?.
More to the point, how are they allowed to get away with this, and yes I know they're pretty much a law unto themselves, but my post is intended as a serious one, and not sarcastic one etc in any way, and I sure I'm not the only one who finds this endless frustration and annoyance along the feather and stone scenario. Thanks.
I seem to recall commentary at the time suggesting prices were on an upward trend, so the reduction in duty might not be noticeable at the pumps. They were also suggesting prices were expected to drop, but there does tend to be more downward lag than upward!
Worth looking at RAC commentary on stuff like this, as they’re usually spot on for things like this
Worth looking at RAC commentary on stuff like this, as they’re usually spot on for things like this
Mr.T said:
F
More to the point, how are they allowed to get away with this, and yes I know they're pretty much a law unto themselves, but my post is intended as a serious one, and not sarcastic one etc in any way, and I sure I'm not the only one who finds this endless frustration and annoyance along the feather and stone scenario. Thanks.
Unfortunately this is the flipside of living in a free(ish) country. We have liberties, but so does everyone else and that includes offering petrol at whatever price they wish (after duties and taxes are applied). If your local petrol station proprietor decided he wanted to charge £20 a litre, he can. He'll go bust because no-one will buy it. If he decided to sell at £1 a litre, he can. Again he'll go bust. If we lived in a planned economy, the price of petrol could be controlled however we'd give up other freedoms and on the whole I think people would not prefer that.More to the point, how are they allowed to get away with this, and yes I know they're pretty much a law unto themselves, but my post is intended as a serious one, and not sarcastic one etc in any way, and I sure I'm not the only one who finds this endless frustration and annoyance along the feather and stone scenario. Thanks.
Panamax said:
The reason is very simple - VAT
With VAT at 20% on the increased price of fuel the chancellor is collecting at least as much tax through additional VAT as he would have been collecting if the duty rise had gone ahead.
It was a 5p drop in fuel duty so that also meant a 1p drop in VAT as VAT is levied on the whole retail price. With VAT at 20% on the increased price of fuel the chancellor is collecting at least as much tax through additional VAT as he would have been collecting if the duty rise had gone ahead.
Limpet said:
donkmeister said:
If your local petrol station proprietor decided he wanted to charge £20 a litre, he can. He'll go bust because no-one will buy it.
Whoever runs our local BP garage seems to be experimenting along these lines.Not in Scotland. We were 1.75 ish before drop. The day before they went up to 1.79.9.
Some garages the day after Chancellor’s cr4p went back to 1.75. Most are now 1.79 and upwards. (Bog standard diesel ) our local one in the village has been over 1.80
I was stopped going into Morrisons garage on Friday as cones were up. It was 1.72. Cheapest in the area.
I went into the shop to buy dinner stuff instead of sitting with the numpties in the queue.
When I came out it was 179.9 and they then started to let folk in.
Some garages the day after Chancellor’s cr4p went back to 1.75. Most are now 1.79 and upwards. (Bog standard diesel ) our local one in the village has been over 1.80
I was stopped going into Morrisons garage on Friday as cones were up. It was 1.72. Cheapest in the area.
I went into the shop to buy dinner stuff instead of sitting with the numpties in the queue.
When I came out it was 179.9 and they then started to let folk in.
Mr.T said:
Firstly, apologies if I'm being dump, or missing something (possible!), but several weeks ago our beloved Chancellor advised there was going to be a 5p reduction in fuel duty, I think with immediate effect ?.
Well certainly in and around my area, Kent and Medway, I've not noticed any reduction in fuel prices for months, so as per usual, are we just being shaf*ed again by the fuel/petrol companies, and are they just adding to their endless profits by not passing on any of this duty cut ?.
More to the point, how are they allowed to get away with this, and yes I know they're pretty much a law unto themselves, but my post is intended as a serious one, and not sarcastic one etc in any way, and I sure I'm not the only one who finds this endless frustration and annoyance along the feather and stone scenario. Thanks.
On the day of the 5p duty cut, most Asda forecourts in Kent (and nationally) cut their prices by 5p not long after the announcement. By 6pm, when the duty cut was due to come into effect, most supermarkets cut their prices. The independents took a lot longer and explanations include the fact that they bought fuel at a higher duty rate and would wait until those stocks had been exhausted before passing on the cut with the new stock. Prices for unleaded were around 176.9 and fell to around 171.9 at supermarkets.Well certainly in and around my area, Kent and Medway, I've not noticed any reduction in fuel prices for months, so as per usual, are we just being shaf*ed again by the fuel/petrol companies, and are they just adding to their endless profits by not passing on any of this duty cut ?.
More to the point, how are they allowed to get away with this, and yes I know they're pretty much a law unto themselves, but my post is intended as a serious one, and not sarcastic one etc in any way, and I sure I'm not the only one who finds this endless frustration and annoyance along the feather and stone scenario. Thanks.
The supermarkets have also not been running fuel in competition with each other and have indeed been using fuel as a captive market. Only Morrisons briefly had a 7p a litre voucher. Asda Fuels routinely used to be the cheapest option, but I find some Tescos to be cheaper.
DonkeyApple said:
Panamax said:
The reason is very simple - VAT
With VAT at 20% on the increased price of fuel the chancellor is collecting at least as much tax through additional VAT as he would have been collecting if the duty rise had gone ahead.
It was a 5p drop in fuel duty so that also meant a 1p drop in VAT as VAT is levied on the whole retail price. With VAT at 20% on the increased price of fuel the chancellor is collecting at least as much tax through additional VAT as he would have been collecting if the duty rise had gone ahead.
Petrol price has risen massively in recent months and the VAT has risen with it. Nearly 50% of what we pay for fuel goes in tax.
With petrol at £1.63 a litre,
- Fuel duty = 53p
- VAT = 27p
Panamax said:
You've been fooled by Rishi's conjuring tricks! Don't believe a word of it.
Petrol price has risen massively in recent months and the VAT has risen with it. Nearly 50% of what we pay for fuel goes in tax.
With petrol at £1.63 a litre,
Right and some of that has been cut. How much in terms of overall take depends on whether sales have remained constant during the period of rising prices which historically they actually don't and tend to fall quite considerably. Petrol price has risen massively in recent months and the VAT has risen with it. Nearly 50% of what we pay for fuel goes in tax.
With petrol at £1.63 a litre,
- Fuel duty = 53p
- VAT = 27p
vikingaero said:
On the day of the 5p duty cut, most Asda forecourts in Kent (and nationally) cut their prices by 5p not long after the announcement. By 6pm, when the duty cut was due to come into effect, most supermarkets cut their prices. The independents took a lot longer and explanations include the fact that they bought fuel at a higher duty rate and would wait until those stocks had been exhausted before passing on the cut with the new stock. Prices for unleaded were around 176.9 and fell to around 171.9 at supermarkets.
Yep. The Asda services cut the price that evening from 176.9 to 170.9 for a litre of diseasal.I know this as filled up the night before at the higher price (was on fumes, so had little choice in the timing).
Forums | General Gassing | Top of Page | What's New | My Stuff