Petrol now 99.7p a litre

ging84

shortchanged wrote: »

Good news for the hard up consumers, not so good for the government tax coffers.

Not true at all
It's only VAT they are losing, the duty is fixed

The vat lost is a relatively small amount a fall of 30p to us is only 6p in vat, when you consider that a fair chunk of fuel is used for business so gets reclaimed 1 way or another. Then there is all the money the goverment it sell spends on fuel, ok perhaps not as much now as before John Prescot left, but it's still going to be a big bill ever vehicle the police, the nhs, the councils, the armed forces etc use. A 25% or so cut in it is going to offset another big chunk of that vat.
You can also bet that a 25% cut in price is going to give at-least a couple of % increase in usage on what it would have been, so in terms of fuel prices alone, there is certainly not going to be a major loss to the gov, it's probably a fairly reasonable gain.

wotsthat

mayonnaise wrote: »

Could be a massive injection into the housing market also.
Good news.

Should help out some of those struggling households too.

I try and have a purge of my expenses at the beginning of each year. Usually there's not much to save because stuff generally goes up in price and I keep on top anyway.

However, I've recently managed to get the bulk of my mortgage borrowings on at 2.29% for 4 years (I never thought I'd get sub 3%), just got the cheapest car insurance for my wife since 2009, mobile phone charges are the lowest I ever remember, the food bill's down, gas & electricity down in 2014.

All zero effort savings and before even considering the petrol savings.

If the low oil price persists and pay rises exceed inflation (as predicted by some) I reckon we're in for a bit of a mini boom.

ging84

Graham_Devon wrote: »

Bigger tax falls are to come from the intervention into north sea oil companies. They are due to reduce taxes "considerably" on the companies apparently. No numbers as yet, but the oil companies are looking for a 50% reduction in taxes (60% down to 30%).

Not sure how we are going to make up that loss in revenue.

Simple
Stop giving it all to the Scots

wiogs

ging84 wrote: »

Simple
Stop giving it all to the Scots

Hilarious:D:D:D:D:D

wotsthat

Graham_Devon wrote: »

One retailer close to them has already reacted and dropped petrol by 3p a litre. no doubt we'll see the supermarkets reducing theirs in the next 24-48 hours.

Asda down to 103.7p from tomorrow.

That's down by £20/ tank compared to a year ago.

It's going to hurt Morrisons - they really could do without a 'price war' that's as easily measurable.

Generali

Graham_Devon wrote: »

They aren't losing that much, around 4p a litre.

Duty and the VAT on that duty is static. They only lose VAT on the reduced product price, hence around 4p a litre.

Bigger tax falls are to come from the intervention into north sea oil companies. They are due to reduce taxes "considerably" on the companies apparently. No numbers as yet, but the oil companies are looking for a 50% reduction in taxes (60% down to 30%).

Not sure how we are going to make up that loss in revenue.

If the spend is down by a billion the VAT take is down £200,000,000, a drop in the ocean even before you consider that more will be spent on other things.

tkane

If the price of oil remains at this level, and no one can really know, then we won't be seeing interest rates rise for a long time. There might be a few token rises so that they are seen to be doing something but they won't be meaningful.

Without interest rates going up or rising unemployment, house prices cannot 'crash'.

StevieJ

Generali wrote: »

According to this mob:

http://www.petrolprices.com/the-price-of-fuel.html

That's a fall of about 33p/litre in the past year. Given that about 3,500,000,000 litres of petrol and diesel are sold each year, that's an injection of about £1,150,000,000 into the pockets of consumers and businesses, a colossal amount of money. Plenty of that money will find itself into the pockets of the working poor, the group that has been harder than any other by the GFC having paid for but not taken part in bailouts etc.

Must be tempting to increase petroleum taxes and wipe out that deficit?

Generali

StevieJ wrote: »

Must be tempting to increase petroleum taxes and wipe out that deficit?

True and increasing tax on petrol is a successful way to raise tax.

However much of the money not spent on petrol will be spent on something else on which tax will be payable. In doing so, jobs are likely to be created in pubs and shops and those people will also pay tax.

It's also important to remember that the point of an economy is consumption, not providing the maximum quantity of tax to the Government.

stator

Fuel duty stabiliser about to kick in? Fuel duty goes up, tax on oil production goes down?