Petrol to be £8 a gallon
Discussion
Jasandjules said:
Instability could push up oil prices yes. But taxation could reduced the impact it has on us...........
You'd think that the government would see sense and lower fuel prices to stop massive hikes in prices and thumping the average working Brit.No wait, sorry, as you were.
At least for the Mr Toads amongst you, the Sunday hoon will be more peaceful...
Yesterday I worked out that on the £1.34 per litre pump price from the place I fill up Diesel is now £6.07 a gallon.
£6.07 a Gallon.
Of which £2.65 is Duty.
£1.01 is VAT
and £2.41 is the fuel cost.
So, HMRC get 60% of the price I pay and MORE than the Fuel company I am buying it off who have to find it, refine and ship it to darkest Cornwall.
HMRC do f
k all for it.
I think they can reduce duty to stop the cost of everything going into orbit.
I run trucks, in 2005 it cost me £328 to fill my truck from empty, yesterday it cost £546.
Guess who is paying for the increase ? yep, my customers. People like you who all eat, drink and buy the things I transport on my truck, and its no good saying "put it on the rail" as that is not possible in Cornwall or many many other places where there is not a rail link and would mean double or even triple handling to keep moving it from road to rail and back to road and then warehouse to smaller van so costs would still go up.
£6.07 a Gallon.
Of which £2.65 is Duty.
£1.01 is VAT
and £2.41 is the fuel cost.
So, HMRC get 60% of the price I pay and MORE than the Fuel company I am buying it off who have to find it, refine and ship it to darkest Cornwall.
HMRC do f
k all for it.I think they can reduce duty to stop the cost of everything going into orbit.
I run trucks, in 2005 it cost me £328 to fill my truck from empty, yesterday it cost £546.
Guess who is paying for the increase ? yep, my customers. People like you who all eat, drink and buy the things I transport on my truck, and its no good saying "put it on the rail" as that is not possible in Cornwall or many many other places where there is not a rail link and would mean double or even triple handling to keep moving it from road to rail and back to road and then warehouse to smaller van so costs would still go up.
groucho said:
Just heard this on the news, because of Libya. Surely our economy would collapse with inflation and the rest? That's £1.78 per litre. Lordy!!
Edited to add: Should be a question mark on title.
I don't think so. High inflation is a thing of the past and it is different this time. Therefore we can borrow lots to buy overvalued propertay safe in the knowledge that we won't get reamed.Edited to add: Should be a question mark on title.
Ah, the wonderful British media again....
Yes, I am sure that instability of the price of oil will have an effect, but if you look through the numbers its all speculation. Currently Libya produces around 1.5m barrels a day, which is something like 1% of the daily total - so quite how they could have such an impact is unclear, even their total oil reserves are around 3% of the worlds total anyway!
Saudi has already said they have more than sufficient capacity to increase production to fill the gap and push prices down, they talked about 4m barrels a day! But the speculation continues.
But yes, price will rise as speculators cash in on the uncertainty. Some more realistic experts re talking about a 3p rise in a month or so and then a peak of around 5p in April, but historically the price drops after then.
Yes, I am sure that instability of the price of oil will have an effect, but if you look through the numbers its all speculation. Currently Libya produces around 1.5m barrels a day, which is something like 1% of the daily total - so quite how they could have such an impact is unclear, even their total oil reserves are around 3% of the worlds total anyway!
Saudi has already said they have more than sufficient capacity to increase production to fill the gap and push prices down, they talked about 4m barrels a day! But the speculation continues.
But yes, price will rise as speculators cash in on the uncertainty. Some more realistic experts re talking about a 3p rise in a month or so and then a peak of around 5p in April, but historically the price drops after then.
off_again said:
Ah, the wonderful British media again....
Yes, I am sure that instability of the price of oil will have an effect, but if you look through the numbers its all speculation. Currently Libya produces around 1.5m barrels a day, which is something like 1% of the daily total - so quite how they could have such an impact is unclear, even their total oil reserves are around 3% of the worlds total anyway!
Saudi has already said they have more than sufficient capacity to increase production to fill the gap and push prices down, they talked about 4m barrels a day! But the speculation continues.
But yes, price will rise as speculators cash in on the uncertainty. Some more realistic experts re talking about a 3p rise in a month or so and then a peak of around 5p in April, but historically the price drops after then.
Thanks your reassurance has resolved my fears about record fuel prices - it will all come good for those who wait Yes, I am sure that instability of the price of oil will have an effect, but if you look through the numbers its all speculation. Currently Libya produces around 1.5m barrels a day, which is something like 1% of the daily total - so quite how they could have such an impact is unclear, even their total oil reserves are around 3% of the worlds total anyway!
Saudi has already said they have more than sufficient capacity to increase production to fill the gap and push prices down, they talked about 4m barrels a day! But the speculation continues.
But yes, price will rise as speculators cash in on the uncertainty. Some more realistic experts re talking about a 3p rise in a month or so and then a peak of around 5p in April, but historically the price drops after then.
There are two things here that are worth looking at:
First, there is the fact that the Govt will see its tax take decrease once petrol breaches a certain level as people will genuinely start buying less. We don't know what that level is but it is probably below the £2 mark. At this point, the Govt will be able to increase its tax take, or keep it stable by reducing their actual charge in order to bring buyers back to the market. So once Govt see their take decreasing they know that they can reduce their tax to gain political brownie points and at the same time stabilising their income.
Secondly, the reason that the price of oil has spiked is due to OPEC and not actually the production of oil itself. There is a fear that other ME states may have production issues like Libya possibly has or that the Suez may be closed. But the reality is that global supply has not actually changed by anywhere near the amount that the recent price hikes would suggest. This means that it is a demand side issue, driven by 2 factors, the first being fear of a fall in supply/delivery and the second being speculation. Just like a few years back oil is being stockpiled. I'm sure if someone is a ship broker they could confirm that business has been brisk in securing tanker storage and those tankers are being filled up and sitting offshore waiting.
As it is a demand side issue, then we can either restrict the exchanges on a global basis to halt the buying, which isn't going to happen. Or the international community can go to OPEC and tell them to drop their price. The latter is the most likely scenario and as oil prices squeeze the global recovery this is what will be done, if it is not already underway.
If OPEC drop then the other producers will have to. OPEC can run at $35/barrel so you can see that there is enormous leeway available.
We also have to bare in mind that there are very strong groups in the UK and other Western markets that want oil to rise as high as possible as it will force their agenda of a society not dependent on oil.
First, there is the fact that the Govt will see its tax take decrease once petrol breaches a certain level as people will genuinely start buying less. We don't know what that level is but it is probably below the £2 mark. At this point, the Govt will be able to increase its tax take, or keep it stable by reducing their actual charge in order to bring buyers back to the market. So once Govt see their take decreasing they know that they can reduce their tax to gain political brownie points and at the same time stabilising their income.
Secondly, the reason that the price of oil has spiked is due to OPEC and not actually the production of oil itself. There is a fear that other ME states may have production issues like Libya possibly has or that the Suez may be closed. But the reality is that global supply has not actually changed by anywhere near the amount that the recent price hikes would suggest. This means that it is a demand side issue, driven by 2 factors, the first being fear of a fall in supply/delivery and the second being speculation. Just like a few years back oil is being stockpiled. I'm sure if someone is a ship broker they could confirm that business has been brisk in securing tanker storage and those tankers are being filled up and sitting offshore waiting.
As it is a demand side issue, then we can either restrict the exchanges on a global basis to halt the buying, which isn't going to happen. Or the international community can go to OPEC and tell them to drop their price. The latter is the most likely scenario and as oil prices squeeze the global recovery this is what will be done, if it is not already underway.
If OPEC drop then the other producers will have to. OPEC can run at $35/barrel so you can see that there is enormous leeway available.
We also have to bare in mind that there are very strong groups in the UK and other Western markets that want oil to rise as high as possible as it will force their agenda of a society not dependent on oil.
paulrockliffe said:
So what IS the justification for all the tax on fuel?
I mean, why not tax food, rail fares, air fares, clothes etc the same?
/Politician Mode on/I mean, why not tax food, rail fares, air fares, clothes etc the same?
You mean you don't want to save the planet? Higher taxes on fuel means that you are helping Gaia you disgusting, racist, child killing planet hater.
/Politician Mode off/
Basically they don't need to justify it, public transport is so f
ked in this country that people are left with no option but to drive if they want to arrive at work on time and have an affordable job.My partner works in Croydon, to travel 30 miles by car takes 45 minutes and costs about £5 there and back. Train would cost £40+ and she'd have to leave at 2300 the night before to get to work for 0700, similarly the bus would take 8 hours to arrive with 12 changes.
dirty boy said:
Invest in a cycle shop
Buy houses close to/in Towns/City Centres so commutes don't require cars
Additionally, it may see a resurgence of shops coming back to local communities instead of the continual growth of out of town centres, although it's difficult to quantify as maybe one journey in a car to a large shopping centre is more economical.Buy houses close to/in Towns/City Centres so commutes don't require cars
Certainly people will be forced to move closer to work just as we all used to.
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