Fuel to go up tonight

Graham_Devon

http://news.bbc.co.uk/1/hi/business/8230185.stm

Going up by 2p a litre in fuel duty and about 0.3p in VAT.

This is the third rise in just 9 months.

The government are no longer using the green line to raise duty, but are now saying this is needed for government investment. Fuel will rise again when VAT rises at the end of the year, so four increases in total in a year.

The AA is saying it is mad to be doing this now at a time when we are trying to exit the recession.

Basically a quid extra to fill your car. Not much, but when added up across the UK, collosal amounts of revenue. What do you think? I think it's going to be needed and this is just the start, so aint gonna get too peeved!

Seems the pound is sliding though, so increases due to currency could also occur.

mewbie_2

Oh you doommonger Graham. If only you had invested in a tank yesterday like I and others did. We are now sitting pretty on a 2% rise.

Dan:_4

mewbie wrote: »

Oh you doommonger Graham. If only you had invested in a tank yesterday like I and others did. We are now sitting pretty on a 2% rise.

Don't worry Mewbs. People have until midnight to get in!

Viper_7

and many of the same people making a trip on purpose to save a few pence!

baileysbattlebus

Graham_Devon wrote: »

http://news.bbc.co.uk/1/hi/business/8230185.stm

Going up by 2p a litre in fuel duty and about 0.3p in VAT.

This is the third rise in just 9 months.

The government are no longer using the green line to raise duty, but are now saying this is needed for government investment. Fuel will rise again when VAT rises at the end of the year, so four increases in total in a year.

The AA is saying it is mad to be doing this now at a time when we are trying to exit the recession.

Basically a quid extra to fill your car. Not much, but when added up across the UK, collosal amounts of revenue. What do you think? I think it's going to be needed and this is just the start, so aint gonna get too peeved!

Seems the pound is sliding though, so increases due to currency could also occur.

One a serious note, with falling tax revenues I guess the shortfall has to come from somewhere. I wouldn't like to hazard a guess at how many litres of fuel are bought everyday in the UK.

I do think businesses should be exempt from the rises - but the private motorist, no.

Most of us use our cars far too much - if we wanted to save money, or be a bit more green, we could use them less. I know I use my car too much - infact if truth be known now that I've given up work I could probably get rid of it and rely on OH's car when he's at home - but do I - no.

Infact the last couple of jobs I did were in the town centre and I used public transport to go to work.

I take my grandson to school now (they're on holiday I know), and we walk every day regardless of the weather, we live close to the school, but I know parents who live not much further away from the school than we do who drive every day.

I am guilty of using my car to go to our Tesco Express - about a 5 or 6 minute walk and to our local corner shop about a 5 minute walk in the opposite direction, not every time - but if I am in a hurry or if it is raining I do.

I guess most of us if could cut our fuel bills by quite a bit if we really wanted to. But the truth is we don't want to.

mewbie_2

I sort of agree with Green taxation in a theoretical as long as it doesn't affect me sort of way. But this isn't Green, it's revenue / taxation. It's a government that has run out of money. So basically it's a tax increase. First of many.

sandiep

But this isn't just a how do you use your car type issue.

Virtually every single thing we buy out of every single store will have been delivered by lorry. And at 10mpg on a good day, a 2p price rise can fairly add to the price. Even if you're buying stuff off a farm the fuel is a major part of the farmers costs.

UK suppliers have absorbed about as much of the fuel increases as they possibly can, and fuel prices are only going to keep going up further, so what we've really got is the UK government chosing to increase prices across the board as the economy is trying to get out of recession.

Graham_Devon

I read somewhere that the average family uses 18 gallons of fuel a month.

That roughly translates into 80 litres.

That could be 1 to 3 tanks depending on your car.

Can't remember where I read it, but it wouldn't seem to me, to be too far out of reasonable scope to use it as a reasonable estimate of average usage. I know I use more than that, and I drive a diesel doing around 52mpg, and do 40 miles a day each weekday without fail. Then theres all the extra journeys outside of work commutes.

But on average, at 80 litres, it's an extra £1.84 per month in tax per family, or household or whatever.

Doesn't actually sound that much does it?

I spose though, for business, this will add up to hundreds or thousands of non-reclaimable tax per month. Those prices then get added to our goods. So would be silly to just look at it from a purely personal car use angle.

LittleMissAspie

I was just talking to my boyfriend about this. He filled up yesterday and was pleased with himself to have saved a grand total of 66p...

Thing is, if you fill up every week because you have a long commute, it doesn't actually make any difference. You are just moving your "fuel year" back a day. You'll still be paying 105p for a year, then 107p for a year etc.

In my boyfriend's case, he fills up maybe every three months, so it made sense to fill up to the top now rather than in a month's time.

Barneysmom

I do about 40,000 miles a year. I know it's a company car and shouldn't bother me but it'll be a big blow to the company I work for. We're not highly paid and the company isn't a massive one.

baileysbattlebus

sandiep wrote: »

But this isn't just a how do you use your car type issue.

Virtually every single thing we buy out of every single store will have been delivered by lorry. And at 10mpg on a good day, a 2p price rise can fairly add to the price. Even if you're buying stuff off a farm the fuel is a major part of the farmers costs.

UK suppliers have absorbed about as much of the fuel increases as they possibly can, and fuel prices are only going to keep going up further, so what we've really got is the UK government chosing to increase prices across the board as the economy is trying to get out of recession.

I agree, which is why I said I thought businesses should be expempt from any increases - hitting the private motorist who can do something about their fuel expenditure is one thing - but hitting businesses is a bit tough.

I thought farmers were able to buy red diesel either duty free or at a very reduced rate or has that changed?