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Hmm, pound is looking a bit scary today!
Comments
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Graham_Devon wrote: »But it wouldn't.
Oil is going up too. And were not paying £1.50 a litre either. Petrol is currently at £1.32.
Great. You need 15% of price change inputs to get the price up by another 4p. Is that better?
If you're using 100 litres a week that 4p will add up to £200 over the year. That's the same as a couple of coffees a week in Starbucks.0 -
Great. You need 15% of price change inputs to get the price up by another 4p. Is that better?
If you're using 100 litres a week that 4p will add up to £200 over the year. That's the same as a couple of coffees a week in Starbucks.
Sorry, I'm not being awkward here, just all your calculations are wrong.
Fuel duty is 57.5p.
Petrol is currently around £1.32.9
You therefore wouldn't need the movements you were talking about.
I was stating that, with the recent changes (fall in pound and increase in oil) we could see 8-10p added to the pump price in the near future.
We already have 4p to be added as I stated. It won't take much to get another 4p added, and certainly not a 15% fall in USD vs GBP.
What is it if you don't drink coffee in starbucks!?
I know what you are saying, but may I put it another way? For someone on 26k a year, after tax, it would swallow a further 1% of their total wage for the year.
We don't need that right now, especially after all the other increases. Not everyone can cut the coffee in Starbucks, especially if they don't drink it.0 -
Its a very confident (or foolhardy) man who challenges Generali's maths ability.
Not sure I'd have the stones Graham.0 -
ruggedtoast wrote: »Its a very confidently (it foolhardy) man who challenges Generali's maths ability.
Not sure I'd have the stones Graham.
Well I'm still waiting for the great deflation
;)
Not challenging as such, it's well documented that every $2 rise in brent crude adds around 1p to a litre at the pumps. With the fall in the pound at the same time, it just exacerbates this. I'm not sure the AA would be out as far as Generali is suggesting.
The maths isn't wrong, the numbers were (i.e. tax @ 80% and price per litre at 150p).
Proofs in the pudding I guess!0 -
Ministers to blame for high fuel prices, says competition watchdog
Britain would have some of the cheapest fuel prices in Europe if ministers had not raised taxes by such large amounts over the last ten years, the competition watchdog has said.
http://www.telegraph.co.uk/motoring/news/9836448/Ministers-to-blame-for-high-fuel-prices-says-competition-watchdog.html
Seems it's got more to do with the government than the price of oil.
For every £5 of fuel....
Duty is £2.90,
VAT is £0.83
And the cost of the actual fuel, including petrol station profit, distributor profit, refiner profit, shipping costs and crude oil is just...
£1.27“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Graham_Devon wrote: »What's occurin?!
(
The markets attention has turned on the Uk.
Was going to happen at some time.
Hopefully will knock away the complancy that exists.0 -
Great. You need 15% of price change inputs to get the price up by another 4p. Is that better?
If you're using 100 litres a week that 4p will add up to £200 over the year. That's the same as a couple of coffees a week in Starbucks.
What the price of unleaded/diesel out with you?
How does it compare duty/sales tax wise? Appreciate it is mixed up in the whole tax strategy."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Graham_Devon wrote: »What's occurin?!
(
Europe doing slightly better than expected. And the markets seeing through the coalition's p1ss poor performance and consequent lack of growth.
Not all bad of course, as a weaker pound is beneficial for exports and tourism. Even if it is unintentional.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Graham_Devon wrote: »Well I'm still waiting for the great deflation;)
Not challenging as such, it's well documented that every $2 rise in brent crude adds around 1p to a litre at the pumps. With the fall in the pound at the same time, it just exacerbates this. I'm not sure the AA would be out as far as Generali is suggesting.
The maths isn't wrong, the numbers were (i.e. tax @ 80% and price per litre at 150p).
Proofs in the pudding I guess!
If fuel, profit etc is £1.27 out of each fiver spent on petrol, then 80% isn't bad as a ballpark figure for the cost of petrol in the price paid at the pump. This is back of envelope stuff, not a sophisticated economic analysis so perhaps I can be excused the odd percent here and there.
As for deflation, I have never predicted it I have just said there is a risk of it. That risk still exists in the Eurozone as M3 (their broadest money supply measure) grows at an ever slowing rate: up just 3.3% in the year to December 2012. I would guesstimate that M4 (if they measured it) would be up about 2% on the year as credit growth is miniscule.0 -
grizzly1911 wrote: »What the price of unleaded/diesel out with you?
How does it compare duty/sales tax wise? Appreciate it is mixed up in the whole tax strategy.
Fuel prices are pretty volatile in Aus and petrol stations have a rather nasty habit of pushing the price up towards the weekend.
In Sydney the headline figure is normally between $1.30 and $1.50/litre but nobody pays that. If you spend $30 at the supermarket you normally get a voucher worth 4c/litre off fuel (it's 8c/l at the moment due to a supermarket price war and 20c/l if you buy 2 cases of beer or alcopops from some bottle shops!). If you have a fuel card you get 5% off but can't use the voucher.
In pounds that's somewhere between say 80p and a quid actually paid per litre. That overstates the price though because the dollar is stupidly strong at the moment. Normally it would be more like 50-75p/l.
We pay about 38c/l tax on fuel plus 10% GST so a bit over 50c/l overall. That's about 35p at current exchange rates but closer to 25p in normal times. LPG has only GST on it, no duty and is very cheap, all the cabbies use it. (link)
Fuel taxes are contentious here: the LNP, our right of centre party, is deemed to have lost Queensland over high petrol prices as the price went over a buck a litre when there were $3 = £1 so 33p/l!. Labor got in and introduced a 9c/l subsidy on petrol prices.
Prices out in the bush can be considerably higher due to the expense of getting the fuel there and also the fact that the gas station owner has to make a living out of a smaller number of customers although prices are still below $2/l in most rural areas AIUI: I've never been to the outback really but it's what a quick Google suggests.
Generally taxes are a lot lower in Aus than the UK because the Aussie Government spends less. It does mean that some things that the UK Government provides we have to pay for ourselves, for example we have to pay for our own physiotherapy here.0
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