Petrol/Diesel

wymondham

http://www.bbc.co.uk/news/business-12862949

I found this article interesting. As the Chancellor has reduced the tax on fuel it should have gone down 1p, but garages are not going the whole 1p as they 'still have fuel purchased at the higher rate' in their storage tanks.

I don't think I can ever recall when the rate was put up the argument for not raising it immediately as they still have the cheaper fuel in their storage tanks! I seem to recall it usually goes up by about 6:01pm on Budget day ??

Am I cynical?

Funny old world! :rotfl:

ultrawomble

Georgie boy can quite happily knock a penny off duty in the full knowledge that he'll get it all back from the increased VAT take caused by global pressures on the price of oil.

julieq

But he would have got the penny PLUS the increased VAT had he not removed it.

FATBALLZ

Yeah I was a bit bemused by this explanation, surely the duty is charged on the fuel at the time it is sold, therefore at 6:01 the fuel becomes cheaper to sell. The petrol station I use put their prices down the afternoon of the budget anyway.

bengalknights

julieq wrote: »

But he would have got the penny PLUS the increased VAT had he not removed it.

But then all the motorists would hound at him even more for not doing anything to help them where as 1p is a token gesture.

jackieb

Georgie boy looks like a good samaritan, yet gets the £2bn a year extra from the oil companies, plus the extra VAT and fuel duty from when the oil companies increase their prices to compensate for the raise in taxes. He says he's going to watch them like a hawk so they don't do that, but really there's nothing he can do, is there? Win win for him.

ash28

jackieb wrote: »

Georgie boy looks like a good samaritan, yet gets the £2bn a year extra from the oil companies, plus the extra VAT and fuel duty from when the oil companies increase their prices to compensate for the raise in taxes. He says he's going to watch them like a hawk so they don't do that, but really there's nothing he can do, is there? Win win for him.

Is this the increase in prices due to the windfall tax on the oil and gas companies, the increase in prices that the government said wouldn't happen?

A number of garages where we are had put prices up a day or two before the budget anyway and reduced it back to Sunday or Monday's price on Wednesday - so we saw no saving.

jackieb

ash28 wrote: »

Is this the increase in prices due to the windfall tax on the oil and gas companies, the increase in prices that the government said wouldn't happen?

A number of garages where we are had put prices up a day or two before the budget anyway and reduced it back to Sunday or Monday's price on Wednesday - so we saw no saving.

It'll probably happen. I've seen no reduction here either. There's actually very little, if anything, he can do to stop the oil companies raising their prices to compensate.

The problem is that exploration costs an awful lot of money, and a lot of the smaller companies can't afford it and will just pull out of the North Sea. It's happened before. The North Sea was actually doing well. Something like this knocks their confidence. Then the price of oil rises as we have to import more and we end up paying even more at the pumps, and in the meantime many thousands of people could have lost their jobs. In 2007 George Osborne critisised Gordon Brown for using North Sea oil as a cash cow. He's a hypocrite, has a bad memory or is just plain stupid. He hasn't thought it out.

whatyadoinsucka

the only way to save money on fuel is to drive less, drive sensibly, drive economical cars, and walk, cycle, take the bus or train were feasible.. The government should not be cutting tax / vat on fuel, although at the same time I'm happy they have pulled any future rises for the time being

At £1.30 - £1.40 i think fuel is affordable, so why all the complaints, Its a great way to tax the untaxable.
The numbers of new style bigger motors on the road, no passengers being carried (apart from the driver) in 3/4 of cars I see.

If fuel was so unaffordable traffic would reduce, and big gas gusslers, would become rarer and rarer..

If labour was still in power do we think they'd have knocked 10 pence of a litre, No Chance

pqrdef

ash28 wrote: »

A number of garages where we are had put prices up a day or two before the budget anyway and reduced it back to Sunday or Monday's price on Wednesday - so we saw no saving.

Of course you did. You're paying less now than if they hadn't put the price down on Wednesday.

pqrdef

jackieb wrote: »

The problem is that exploration costs an awful lot of money, and a lot of the smaller companies can't afford it and will just pull out of the North Sea.

Let's not weep for the oil producers. Two years ago the price of crude was half what it is now. If they could balance the books then, how much profit are they making now?