Petrol Prices !!! Im sick of it....

Biggles

There was a great headline in the Telegraph today:-

"Only 1 in every 20 Chinese has a car. And you still believe in cheap oil?"

Actually the article went on to say there are only 20 cars for every 1,000 Chinese (as opposed to 950 cars per 1,000 Americans) which I make 1 in 50.

Brilliant.

Tucker

bryanb wrote: »

LPG comes from the same hole in the ground as Petrol/Diesel our government simply haven't taxed it yet. In fact it is Liquified PETROLEUM gas

And your point is...........?

LPG is actually a by-product of the process by which oil is converted to gasoline. Whilst LPG cannot be considered a renewable fuel, it is an under used resource and something which in the past was just burnt to dispose of it.

It's the demand for petrol and diesel that is driving it's price through the roof, nothing to do with tax.

Davetrousers - my car does consistently 30 mpg on LPG compared to around 34 / 35 on petrol.

Tucker

PS - diesel is in greater demand and shorter supply than petrol, hence it's currently about 15p more where it used to be 3 or 4p less no so long back. Tax is irrelevant here. The gov haven't added more tax to diesel, it's just market forces.

There is no sign of it changing or getting any better, in fact the predictions are for £1.50 per litre and some predict £2.00 by the end of this year. Only another 2p of this will be anything to do with tax.

We had better hope those are pessimistic as the knock on effects are are disaster, but who really knows?

Idiophreak

Tucker wrote: »

It's the demand for petrol and diesel that is driving it's price through the roof, nothing to do with tax.

Around 70% of what we pay for fuel is tax.

That means the rising cost of petrol (through demand etc) is responsible for 30% of the rise in cost. Tax is responsible for 70% of the rise in cost.

So if the petrol company put prices up by 3p/litre pre-tax, we'll pay 10p per litre more.

How can you say tax has nothing to do with it?

Poppycat

With the government getting more money (tax) because of the rise in a barrel on oil which passes on to the forecourts, they are actually getting more tax due to the rises in oil than was foreseen. There really is no need to increase fuel (tax) again this year, as drivers are already finding it hard to swallow.

mustrum_ridcully

Idiophreak wrote: »

Around 70% of what we pay for fuel is tax.

That means the rising cost of petrol (through demand etc) is responsible for 30% of the rise in cost. Tax is responsible for 70% of the rise in cost.

So if the petrol company put prices up by 3p/litre pre-tax, we'll pay 10p per litre more.

How can you say tax has nothing to do with it?

Fuel duty is NOT a percentage of the price, it is a fixed amount, that's why the chancellor says 2p on the price of litre of petrol not 2%.

UK fuel duty: 50p / litre (IIRC)
VAT 17.5% on top of fuel + duty

Taking 35p / litre as the start we get 35 + 50 + 14.875 = 99.875p
With your 3p increase lets say, 38 + 50 + 15.5 = 103.4p

Don't know where you got your 3p becomes 10p figure from but it's very wrong, the truth is a 3p increase becomes a 3.5p increase.

Idiophreak

Thanks for that m_r - set me straight, good and proper

So, that being the case, are we really saying that a 10% rise in a couple of months is just down to "increase in demand"?

moggylover

antwilson wrote: »

fill this in to get fuel duty lowered http://petitions.pm.gov.uk/Lowerduty30/

Done it! No point moaning about it if you won't put your name to it is there!

Thanks for this - surprisingly easy!

moggylover

davetrousers wrote: »

The wording of the peteition is this "We the undersigned petition the Prime Minister to Reduce Fuel duty to bring fuel prices back to an acceptable level."

That's it! not very comprehensive is it?

If you think you can do better - then go for it!

"There are those that will - and those that will only criticise" seems to be a great new maxim!

mustrum_ridcully

Idiophreak - I wouldn't say it's just an increase in demand, there's a lot of market speculation going on. It's a bubble (like dot com shares, house prices...) so it will burst sooner or later. Trouble is there's no way of knowing when that'll happen so it's best to get used to the idea of there being an upward trend in oil prices.