Friday, 10 December 2010

Who To Blame For Petrol Prices

The price of a litre of unleaded petrol has hit a record high today of 121.76p and it is expected to rise even further in January as fuel duty increases and the higher VAT rate bite.
Usually this would lead to kicking out at the arrogant oil companies who make billions at the expense of the environment and human population and that is how the UK Government like it because by letting them take the blame, we don't look too closely at exactly where the £1.21 you pay for that litre of petrol actually goes.
A guide at show that if a litre of unleaded cost 119.96, it would be split in the following way:

Fuel Duty - 57.21p
Product 39.85p
VAT 17.90p
Retailer 5p

With fuel duty and VAT, almost two thirds of your 119.96 goes to the Government with the actual petrol costing just under 40p.
With 34 million drivers in the UK, this is a massive money spinner for the Government, the RAC state that road users pay £46bn each year in fuel duty and road tax, but as our roads came 24th out of the top 27 countries considered by the World Economic Forum, the money isn't being handed to the highway agency.
This can only lead us to the conclusion that those of us who have to use the road network to go about our daily business are regarded as a soft touch who will pay the price for fuel whatever it might be.
Of course they know that for the majority the only other options are the overcrowded trains or buses and the prices of those have gone up as much as 13%.
Thirty-four million drivers? That's a lot of people with a lot of votes and a loud voice if we take a leaf from the students book and show the Government that we have had enough of them ripping us off.


Cody Bones said...

Ok, a few comments if I may

1.Calling for lower taxes and pointing out government waste and inefficiencies? Lucy, you sound like a right proper conservative. Welcome to the Tea Party!!!

2. Don't forget that lower gas prices will result in more gas being purchased, which leads to "the arrogant oil companies who make billions at the expense of the environment and human population" digging out even more oil from the ground. Oh, and lets not gloss over the fact that the 5 biggest oil companies in the world are Governments, not publicly traded corporations, and that holds true for 8 of the top 10.

3. You seem to be falling into the trap that you want services but you want someone else to pay for them, this is not a good thing.

AS far as lowering taxes goes, I'm with you in spirit.

Lucy said...

I was trying to redirect the anger over the high cost of fuel aimed at the right people, the Government. Not to say the oil companies should not be kicked from pillar to post, they should and at every chance, but they are not the reason the fuel is so expensive here.
You are in the same ball park as those who say the price is kept high for 'green' reasons and to deter too many from people.