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UK Petrol Market Working Well
Comments
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Get rid of all fuel taxes and duty then. Need to cover the shortfall somehow0
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cover the shortfall with cuts in benefits, public sector pay and pensions.0
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angrypirate wrote: »
Diesel is more expensive in the UK than in Europe because its taxed more than petrol, whilst in other countries it isnt. Here it used to bes seen by the government as dirty HGV fuel so was taxed more. Now its a lot cleaner and actually more efficient than petrol.
Petrol prices dont rise and fall with crude oil because its just not that simple. Crude oil is bought months in advance of it being available to the refineries. Some crudes are heavy and wont produce that much petrol as they contain high amounts of asphaltenes, metals and sulphur, whilst others are light and sweet, containing a high proportion of petrol and diesel cuts with little sulphur and metals. Refineries in the UK are making money, but not much.
What is the difference on duty for diesel?
The reasons I ask is I asked this on another thread. The reason for the differential was given that less diesel is produced per barrel, only 1/3 compared to petrol plus the growing demand for diesel leading to an excess of petrol.
I appreciate that oil is brought forward but surely the price should ripple in phase a few months behind? I appreciate that fuel is only a proportion of the overall cost so variances won't be as marked.
The motorist has always been seen as easy prey buy the HMRC."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 -
JoeCrystal wrote: »Get rid of all fuel taxes and duty then. Need to cover the shortfall somehow
About £30bn IIRC."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 -
Diesel typically contains more dissolved sulphur (prior to treating) than petrol because it is a denser liquid so can hold more.grizzly1911 wrote: »What is the difference on duty for diesel?
The reasons I ask is I asked this on another thread. The reason for the differential was given that less diesel is produced per barrel, only 1/3 compared to petrol plus the growing demand for diesel leading to an excess of petrol.
I appreciate that oil is brought forward but surely the price should ripple in phase a few months behind? I appreciate that fuel is only a proportion of the overall cost so variances won't be as marked.
The motorist has always been seen as easy prey buy the HMRC.
Diesel engines used to be less efficient and realsed PM10s into the atmosphere as well as sulphur dioxide. As technology has moved on, engines burn the fuel through to completion reducing the PM10 emissions and refineries have invested in hydrotreaters reducing the sulphur content of diesel.
The government put a higher tax on diesel back in the day to make it less attractive for the motorist as it was dirtier. The tax difference has never been reversed.
The price of crude doesnt ripple through that much because the bulk of what you pay is tax, and that doesnt change. In the months that crude oil is more expensive, refineries struggle - in fact, some refineries can and do actually loose money in these months. The price of crude comes down, the price at the pump stays the same and the refinery makes money0 -
angrypirate wrote: »
The government put a higher tax on diesel back in the day to make it less attractive for the motorist as it was dirtier. The tax difference has never been reversed.
From 23 March 2011 the UK duty rate for the road fuels unleaded petrol, diesel, biodiesel and bioethanol is GB£0.5795 per litre (£2.63 per imperial gallon or £2.19 per U.S. gallon).[8]
http://en.wikipedia.org/wiki/Fuel_tax
2012Type of FuelTotal Cost at PumpFuel DutyVAT% of Fuel Cost that is TaxUnleaded118.7p58.19p17.68p64%Diesel122.3p58.19p18.21p62%
http://www.whatgas.com/car-finance/fuel-duty.html
Is there another hidden tax on diesel?"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 -
My bad. Thought diesel was taxed higher0
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angrypirate wrote: »My bad. Thought diesel was taxed higher
The total tax take on diesel is marginally higher, due to the incread VAT aspect.
Based on a 7p difference, it's 1.4p extra VAT each litre for the government.
It's always been wrong to me that they can charge VAT on tax.
57p duty attracts a further 12.8p in VAT. It's value added tax, and there is no value there, we don't get anything when we pay for the duty. VAT is charged on goods. Therefore, in my mind, duty should not attract VAT as we get no goods from the duty aspect.0 -
Graham_Devon wrote: »
It's always been wrong to me that they can charge VAT on tax.
VAT is a consumer sales tax. Which business can recover by offsetting.0
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