pslewis

It's a good job we are taxed so highly on Petrol, so that a 30% increase in the Raw Crude Oil price equals only a 2% rise at the pumps!

Luminous

iTrader: (3)

Aren't you forgetting about VAT?

We pay VAT tax on top of the fuel duty tax. Not to mention that all the money spent comes from taxed income. Oh, and to get the car to the petrol station you will have also had to pay Road tax, and Insurance Premium tax.

FlightMan

Careful Pete, making points like that, you're in danger of disappearing up your own @rse!

Little Miss WRX

Shipping costs have skyrocketed - as with airline fuel surcharges.

Most of the time I reckon they just use it to bump up profit, the fluctuation and variation from shipping line and airline is ridiculous especially out of China!

ScoobLou

iTrader: (21)

That would be terrible

Leslie

Lots of conning going on these days

Les

pslewis

I'm just making the point that, if we had no Tax on Petrol, the Crude Oil Price would have a HUGE effect on the price we pay for petrol. Imagine it going up 30%!!

The Tax, oddly, cushions us from the wild fluctuations of the raw crude price. (I still hate paying it, like the next person, I would point out!).

Petem95

Despite these increases, CPI inflation figures will still somehow manage to be only about 1.9%

Accurate calculation that is. Not. Funny how the goverment use the CPI figure when giving pay rises to public sector workers, but when MP's are after an increase in their pensions they use the RPI inflation figure which is more accurate, but about 2-2.5 times higher than CPI

pslewis

Luckily my payrise this year was based on the RPI ..... + a Performance Element.

MattW

Too true Pete, if it had gone up 30% in one day, jeez, imagine it hit 39p and it was only 30p per litre yesterday.

pslewis

AHA! BUT, the market would sustain 90p - so thats what we would be paying (if there was no Tax to pay) - jumping to £1:17 WOULD make us sit up and weep!!

Devildog

No it wouldn't sustain 90p. In the same way that no one would pay £3 for a pint of milk or a loaf of bread.

Certainly the petrochemical companies would take as much profit as they could, but its highly unlikely they would ramp the base costs that high.

C'mon pete, you should be clever enough t know that.

Anyway, to suggest that the tax element absorbs the price hike in crude oil is naieve in the extreme.

Petem95

I knew, pheww thank god Liebour have taxed the hell out if it to the extent where the actual cost of the oil is only a tiny fraction of what you pay, so we are custioned from sudden sharp increases....

pslewis

That's funny, I paid £1:03 yesterday, so did many others.

It sustains 90p easily .............

People pay £30 for a drop of Perfume ....

Devildog

Pete,

If there was no tax, it wouldn't sustain 90p because the price hikes would have been less extreme.

Would you pay £3 for a pint of milk, if you knew that £2.95 of that was pure profiteering?

Perfume is entirely different, its a luxury item.

pslewis

People will buy petrol at 90p .... fact.

Why would they sell it any cheaper????

Devildog

lol

Of course they would now, because that would represent a 10p cut.

Duty and vat make up approximately 70% of the pump cost. There is no way that road hauliers would entertain massive profiteering by the fuel companies and resellers.

pslewis

You pay £250 for a BackBox, yes?

It may shock you to know that it costs £5 to make .... does that stop you? No it doesn't.

You are happy to pay £1:00 a litre for your petrol - because thats what you actually do. Thats the price, pay it or walk ..... simple as.

I don't like paying £150 for a pair of Specs. when I know I can buy a pair of Reading Specs for £1 in PoundLand!!! ............... but, that's the price - I either pay it or walk into lamposts!!

EddScott

Can't complain here. I put £20 in my golf driver nearly 2 weeks ago and its still got plenty left.

Cyclescheme is your friend

Devildog

You don't change do you - ignore the bleeding obvious when it doesn't suit your ends

All of your examples have cheaper equivalents, or indeed are simple luxury items that are not essential.

We pay 100p a litre for petrol because 70p of that is duty. Not because we are happy to. You pay £150 for a pair of glasses because you want designer frames that cost £3 to make - not because your eyesight dictates it. You spend £250 on a back box that costs £5 to make because you want to, not because you need it.

if you can't see the difference between luxury items and something like fuel, you are either less intelligent than I thought, or you are simply trolling again Pete. And you know where that got you the last time

pslewis

Hardly Trolling - just having a frank discussion - it could be said that you are trolling as you don't 'get it' or are simply winding me up!

The Oil companies will charge what they know we are willing to pay - that is about £1 a litre. Fact.

Take the Tax out and the price will drop to 30p a litre?? Yeah, right .... I wish I lived on your planet

The Oil companies will charge £1 a litre, simple as that. Maybe competition will drive the price down a bit ..... but, don't kid yourself that they won't charge what we are happy to pay!

Devildog

Ok, I'll indulge you for a moment.

What's your basis for declaring that its "fact" that we would be willing to pay £1 a litre if there was zero duty and no vat?

I didn't suggest that fuel would drop to 30p a litre Pete, I don't share the same black and white views as you Of course it would be more, but just how much more is very much an unknown quantity, and certainly not a "fact" as you profess.

pslewis

Visit ANY forecourt tonight and witness numerous demonstrations of people willing to pay £1 a litre to use their chosen form of Transport.

I rest my case - it really IS that simple.

Where are they going to buy cheaper petrol if all the garages are charging £1 a litre??????

fatherpierre

They charge £1 a litre so they can make their 1/2p profit.

They're hardly going to sell petrol at a loss.......