24.11.08 Fuel prices to rise as motorist hit with 2p duty increase

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Do you think the government should cut fuel tax instead of making motorists foot the bill for the credit crisis?


A permanent 2p duty increase in fuel tax has been introduced in the pre-budget report, which despite being presented as revenue neutral, will mean that fuel prices will rise over the next year and beyond.

The move to increase fuel duty by 2p has been introduced to offset the rate cut in VAT from 17.5% to 15%. However, although the VAT holiday will last 13 months, the 2p duty rise is permanent.

When VAT returns to 17.5% motorists will still be paying the higher rate fuel tax of 52.35p per litre and the higher rate VAT, making tax 74% of the total cost of a litre of fuel, and instantly boosting the cost of fuel by 2p a litre.

If the Chancellor had instead announced scrapping duty and VAT, a litre of petrol would cost just 25p.

The changes are designed to be neutral, but calculations by PetrolPrices.com show that there will be a slight increase at the pumps of 0.4p a litre, or 20p per average 50 litre tank of unleaded when the changes come into effect on December 1st. The fact that fuel prices will increase at all is contrary to the message from the Chancellor that the changes will be revenue neutral.

Motorists and businesses will effectively be bearing the brunt of the costs involved with implementing changes to help the UK as it heads into a recession.

Fuel is taxed twice – a fixed duty and percentage VAT. The changes mean that the fuel duty will be 52.35p per litre and VAT will be 15% from the 1st December.

Do you think the Chancellor did the right thing? Is it fair to make motorists foot the bill for the cost of reducing VAT? Should we have VAT on fuel at all?

Your Comments

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,,,
RE 10890

"tree huggers and downright liars on this blog"

"90% of these 'experts'!! have never had a real job,"

"global warming scam is a con

"Romans grew grapes in Scotland!! "

"I am not a sponge to be milked "

"corrupted all our national institutions and media,"

Has something upset you Duncan Kenworthy?

Care to substantiate your claims?

Posted by Sasquach Littletoe, 3rd December 2008 5:50pm

We can bleat on about Global Warming, who's to blame, what is the correct price of diesel, socialist lemmings, tree huggers, ad et al ........

My burning question is this,

When is this unelected buffoon, we mistakenly refer to as Prime Minister going to "Sling his hook", taking the incompetent Alistair Darling and the rest of the mottley New Labour Crew with him?

Posted by Chris, 3rd December 2008 6:05pm

Is the rise in taxes an extra income to house our Eastern European counterparts?
Many home grown residents are in need of a job and improved living conditions.
Not many of either at the moment.
The government have announced removing benefits for clients who cannot prove they are eligible or actively seeking work, including young mothers and the infirm, while at the same time companies are announcing looming record redundancies.
Another twist on unemployment figures?
Maybe I am not seeing the wood for the trees, but millions of pounds everyday in road taxes are going somewhere!

Posted by Why Me?, 3rd December 2008 6:08pm

Just been browsing back over the blog and came across this comment -

Free tip Chemistry 101:- We brew so much beer. News flash. Ethanol is a by-product of this process. It is up to 30% more efficient (performance) than petrol and would not take a lot to modify existing petrol engines. Watch the Discovery Channel - Saab did a documentary on this subject.

I just returned from Brazill about 3 weeks ago. In Brazil this technology is SCIENCE FACT, they have a product at the fuel stations they call "ALCOOL", an ethanol based fuel substitute, it's half the price of normal fuels too.

Posted by Chris, 3rd December 2008 6:18pm

If the fuel duty stays up i don't think i will be in business next month, as a small business we pay vat on our invoices, supplies and fuel, what has he done to help us ......SWEET F.A. Labour give it to you in one hand and grab it straight back before it reaches the other hand. STOP TAXING FUEL AND THE SMALL BUSINESS THAT KEEP THE COUNTRY GOING MAY STILL BE HERE NEXT YEAR AND NOT CRASHING INTO THE WALL LIKE MANY SO FAR.

Posted by Neil Gawthorpe, 3rd December 2008 6:41pm



Now that petrol prices have dropped below the one pound per litre level it is easy to forget that the world still faces peak oil. This is the point where half of the world's oil supply has been pumped out of the ground. From here on it will be a diminishing resource.

Extracting the first half of oil from a well is the easy bit, as the lighter fuels are found at the top and are under pressure so that the oil just gushes out. Then the pressure is less and more serious pumping is required. Deeper down the oil is thicker and harder to pump up.

Water and sometimes gas is pumped into the oil well to raise the pressure. All of these problems and techniques make it more expensive to get the remaining oil out. Once the oil peak has been reached oil prices will inevitably rise.

So peak oil has profound implications for us. Oil is the basis of our energy supply, oil is the basis for worldwide intensive agriculture, oil is the basis of plastics and synthetic materials. Our economy can only grow with the growth of energy supplies. Once peak oil is reached everything changes.

The Transition Town movement in the UK starts out with the recognition that we are at, or very close to, peak oil. Taking that as the starting point the movement then asks how will our towns adapt to a low energy future? What will we have to do to make the transition as easy as possible? How can we start the process of transition?

For us in the UK the journey starts with a growing awareness of the situation and by asking questions.

Where will our food come from? Where will our energy come from? What work will we do? How will our towns look 20 years from now? Will there still be cars and supermarkets? What will be the basis of our local economy?

The solution?

Stop whining and whinging about current fuel costs and start preparing for a life of austerity.

Find local employment. Reduce your debts. Reduce your fuel consumption. Grow your own vegetables or buy from local suppliers. Stay healthy. Exercise regularly. Insulate your home. Help your family, friends and colleagues to understand the implications of Peak Oil.

Posted by Peak Oil, 3rd December 2008 6:45pm

If all the doom and gloom on this blog is to be believed we could be facing
a grim pretty future, because it won't be limited to just local travel by car .............

What about Air Travel and Ocean crossing vessels. We'll be back to stage coaches & sailing ships and months to get from A to B.

Perhaps Nuclear Power is not the big evil Dragon it's painted, we're gonna need alternative sources of energy and pretty damn soon.

Posted by Chris, 3rd December 2008 6:55pm

Hi
I just think the government and i mean every single one of them,preaches that they are trying to help everyone, no instead they are up to every trick in the book, they always give you a false sense of security, the way they are treating us moterests is just beond words. Surely someone somewhere can do something about these liars and theves,i no any member of the public would not get away with it. They hammer us every road and direction, the sooner they are out the better. I can not even watch the liars and theves on the tv i detest them all so much. Can someone tell me who we can turn to, My mother told me some years ago when labour got in you will all no about it now with paying higher taxes for everything, oh how my mother was right thank god she is not here to see it, this complaint is to the liars and theves of the government. Same on you all..

Posted by C Mc, 3rd December 2008 7:07pm

Re 10890

Did someone get out of bed the wrong side this morning?

Posted by Interesting Times Ahead, 3rd December 2008 7:18pm

Wee Gordon had planned to take £X million off motorists to balance his books. His books now have no way of being balanced so he takes it off motorists anyhow.
I cannot understand how any motorists in UK can vote for this government

Posted by Bombardier, 3rd December 2008 8:15pm

Considering we are an oil producing nation and at the same time pay 50% higher price for fuel than Europe Canada or the USA .they know we need fuel so gamble we will do nothing except complain. drive our cars into the city and town centres.take the keys out and walk away just as the French Farmers did with their tractors in Paris. and they got results

Posted by Ritchie Ross, 3rd December 2008 8:31pm

I am very disillusioned with the so called free world.

We work so hard, we live one of the richest economies in the world and we are being permanently screwed by those we elect to represent us and act in our best interest.

How is it possible, we are excessively taxed, we get substandard services or no services at all unless we pay, constantly bombarded with supposed choice of which we have little, and then try to deceive by saying we get good value?

I am being conned every month, I know I pay more than my share.

Is there anyone in government interested in the ordinary person trying to make and enjoy life.

Labour you are out, you are not for the common man.



Posted by Dexter , 3rd December 2008 9:11pm

Government does not care about us, its just a face. if they could they would take everything we earn.

You don't get anything for nothing, they will claw the money back and more. Does not matter who's in power, there all the same greed, greed, greed and more greed.

I agree diesel should be cheaper than petrol, we should be paying less tax on it. I do 90% motorway driving and get over 60miles to the gallon on a car thats ten years old.

Posted by Andy Georgiou, 3rd December 2008 10:14pm

Whats wrong with the people in this country. the people of the country own the goverment, so its about time the people spoke up and told them what we want and not the other way round.why should the motorist pay more for there petrol for labors MESS. KEEP PETROL PRICES DOWN BLAIR, DO THE RIGHT THING FOR ONCE.

Posted by Shaun Morran, 3rd December 2008 10:27pm

Actually fuel is triple taxed for most people: we pay tax on what we work hard to earn before we have to fork out to pay for almost everything else to support life as we know it! So not only do we suffer from having to work for the government for almost a third of the year (income tax), but we have our pockets dipped into twice for the privilege of driving to work to do so (fuel tax & VAT on the fuel tax!) It might be a little more palatable if the people we employ to run our government (MP's & civil servants) were honest & up-front enough to admit to this fraud.

Posted by Peter Cheeseman, 3rd December 2008 10:41pm

Glad to see Peak Oil is still posting (or should I say cut and pasting) his rubbish.....

Posted by Mike, 3rd December 2008 10:44pm

It's about time the government got their books balanced with slamming the motorist all of the time!

Posted by Mrs J Looker, 3rd December 2008 11:04pm

Ya allllllllllllllllllllllllllll betta starta lisen ta dis Peak Oil fella. im nos wat goin on in de wurld. Ya alllllllllllllllllllllllllll gotta stop usin de cars an lorrys an start ta wurc local. im macin alotta sens ya nos. Forget dem tax an stop complanin about everiting. Ya allllllllllllllllllllllll needs a simpla lifstile if ya nos watta min.

Posted by Yeh Mon, 3rd December 2008 11:23pm

Spare me Gordy's fairness! Let's send him back to his Scotland at the next general election.

Posted by Jose Tarrago, 3rd December 2008 11:58pm


Re: 10907

And your take on things is that all is rosy in the garden?
Would you care to refute any of Peak Oil's reasoning?
Is his view a little too pragmatic for you?

Posted by Greg Brown, 4th December 2008 12:26am

Governements do not care about people full stop. They are just there to keep us all under control and make as much profit as possible (mostly out of the lowest paid).

Just look how many people die each year of completely avoidable and curable diseases. Sick people = big money.

Any product that is in high demand will come at a high price. The only way to reduce the price is not to buy the product! Until the whole country starts to us alternatives the price of petrol will forever increase and be heavily taxed by governement.

Alternatives have been around for years. It's just that the oil industry and governement do not want us to use alternatives because it would compromise their extremely lucrative business to say the least.

The only way to change anything is to take action. So stop talking and start walking. The best form of exercise for everyone able to do so! If walking or cycling isn't possible and public transport is not useful for you then....

A cheap and viable option is vegetable oil (yes diesel cars, lorries and vans can be converted very cheaply to run on vegetable oil). The cost of vegetable oil 37p a litre from supermarkets!

And did you know that 40% of green house gasses are produced from the consumption of animals. Agricultural emissions are caused by livestock production, transport of livestock and feed all culminating in to a heck of a lot of gas!

So do your health and the planet a favour by reducing your meat in take. Better still don't eat it at all. As far as cutting edge health and nutrition is concerned meat is completely unnecessary and so passé.





Posted by Lisa, 4th December 2008 1:21am

typical of a government to off-set a positve (however small) of reduced vat, to prompty give a negative (that could reap more) by increasing fuel duty.
although they state it is a neurtal cost, the oil companies will increase the cost of fuel as so to maintain their profit margin, natural law of economics.

as someone who commutes by motorbike to work, this fuel rise will cost me more than i will save from the VAT reduction. so yet again the motorist is forced to suffer the burden of government money making policies. (don't get me started on going for a pint at the end of the day!!)

Posted by Mark Foulger, 4th December 2008 8:34am

This doesn't make sense at all. Why reduce VAT and add on 2p tax! If the government really want to help the average family in the UK they will reduce fuel duty. Increasing it is effectively a poll tax that hits everyone!

Posted by Chris B, 4th December 2008 11:14am

CAN SOMEBODY PLEASE EXPLAIN WHY PEOPLE HAVE CONTINUED TO VOTE THIS PARTY BACK INTO POWER . INSTEAD OF TRYING TO GET VALUE FOR MONEY BY ENSURING THE EFFICIENCY OF PUBLIC SECTOR SERVICES THEIR ANSWER SEEMS TO BE TO KEEP THROWING OUR MONEY AT PROBLEMS AND THEN TAXING US MORE WHEN THEY RUN OUT.
WHAT WILL IT TAKE FOR A PARTY TO ACT RESPONSIBLY WITH PUBLIC SECTOR FINANCES . IF THIS LOT WERE RUNNING A BUSINESS IT WOULD HAVE GONE BUST YEARS AGO.
NEVER MIND JUST PUT MORE DUTY ON FUEL AND KEEP SQUEEZING US TIL WE SQUEAK

Posted by Mark Thornton, 4th December 2008 12:39pm

RE 10912 Lisa,

"Governements do not care about people full stop. They are just there to keep us all under control and make as much profit as possible (mostly out of the lowest paid)."
**Profit? And just where does this profit go? Try voting (if you are old enough) and then have your say.

"Just look how many people die each year of completely avoidable and curable diseases. Sick people = big money."
**So exactly how much do you subscribe to all the charities each month to help fund reaserch? Look at how many people die in the third world, or does this not bother you?**

"Any product that is in high demand will come at a high price. The only way to reduce the price is not to buy the product! Until the whole country starts to us alternatives the price of petrol will forever increase and be heavily taxed by governement. "
**Until major investment is made in alternatives, there is mostly no other option available to most of the population.**

"Alternatives have been around for years. It's just that the oil industry and governement do not want us to use alternatives because it would compromise their extremely lucrative business to say the least. "
**Well, reports state oil is fast becoming a scarce comodity, so all the governments are charging headfirst and blind into financial and economic ruin. **
**Yep, right.**

"The only way to change anything is to take action. So stop talking and start walking. The best form of exercise for everyone able to do so! If walking or cycling isn't possible and public transport is not useful for you then....

A cheap and viable option is vegetable oil (yes diesel cars, lorries and vans can be converted very cheaply to run on vegetable oil). The cost of vegetable oil 37p a litre from supermarkets! "
**PLEASE show me the veggie oil that can run my car for 37p ltr. As this would surely become high demand in such a short time the price would rocket into infinity and beyond.**

"And did you know that 40% of green house gasses are produced from the consumption of animals. Agricultural emissions are caused by livestock production, transport of livestock and feed all culminating in to a heck of a lot of gas! "
**Trap the methene and within 6 months (summer) you could heat your home for the next 6 months (winter), although I would not wish to be within 50 miles of your home**

"So do your health and the planet a favour by reducing your meat in take. Better still don't eat it at all. As far as cutting edge health and nutrition is concerned meat is completely unnecessary and so passé."
**As was said recently, McDonalds has a lot to answer for**

Posted by Steve M, 4th December 2008 1:08pm

Whole swathes of government and public service are costly and inefficient. Transport is only one example. You can fill a 4x4 tank in Dubai for about £10, USA isn't much more . Only a proportion of the money we pay in UK for road tax and fuel duty is spent on transport, and there is little governemt imperative to imporve the driver's lot. We are considered planet destroying pariahs. We need stronger representation.

Posted by John Izat, 4th December 2008 1:36pm

Its amazing that a barrel of oil now only costs around $47 nearly a fall of $100 since its peak yet we still are been ripped off, a litre of fuel never falls as quick. Then to rub it in the big fuel companies announce millions of £s in profits. This is whats called having us over a barrel. And the goverment do nothing except tax the motrist even more. Labour for the working class. Dont make me laugh. Re-elect them at your own peril.

Posted by Peter Bailey, 4th December 2008 2:42pm

I would like to know why we have to pay VAT on the Fuel Excuise duty, if you look at your VAT receipt when you buy your petrol you will see that VAT is charged on both the actual cost of the fuel and the duty.

Why is the Government allowed to charge a tax on a tax? I'm sure the same holds true for purchase of alcohol as well!

Posted by Phil Ashton, 4th December 2008 3:11pm

Here we go again !!! Petol prices down.....Taxes up !!! Roll on the next election.

Posted by Derek Miller, 4th December 2008 3:50pm

It would be fairer if the government raised its necessary revenues through progressive income tax rather than deceiving and confusing the public with the present snowstorm of different taxes.

Posted by Allan Dolley, 4th December 2008 4:26pm

So much for Gordon Brown and his affair with prudence. But once again it's the old answer to everything. Let's hit the motorist, they can bail us out.
How wrong can he be? More and more drivers are cutting out needless journeys to save money. In doing so this means less money for the government. Taken to it's worse case, if we all stopped using our cars for long enough, where are they going to get their money then?
It is about time one of the parties started listening to the man in the street for a change. No other country hits the motorist like Britain, no wonder we are fast becoming a third world country.

Posted by John Neale, 4th December 2008 4:35pm

No surprise there with our Gordon!
He says No Boom or Bust. He's going for BUST!

Posted by Colin Mealing, 4th December 2008 5:11pm

I say good - there are too many cars on the road, make it more expensive to drive and less people will afford it, meaning I can get places on time, rather than sitting behind clapped out old bangers, that anyone can purchase these days!

Posted by Dave Barnet, 4th December 2008 5:14pm

What hypocrisy from the Labour Government. Whilst the PM strongly urges the petrol companies to reduce the cost of petrol, he fails to inform us that the majority of the cost is tax that goes to the Government! He must think we are all totally stupid not to realise that.

Posted by Derek Sharp, 4th December 2008 5:55pm

I don't know why we are all moaning. Greed is rife throughout our society which was given a real kickstart in the Thatcher era. You know, me, me, me, now, now, now!! We are all to blame for the mess we are in. Think personal responsibility. We deserve what we get. Just hope that when we get through this, lessons will have been learnt. Or will they.

Posted by John Walsh, 4th December 2008 6:05pm

.
10924 Dave Barnett...

SNOB; someone who adopts the worldview that some people are inherently inferior to him/her for any one of a variety of reasons, including real or supposed intellect.

Even more apt, a pseudo-intellectual is a type of snob.
Such a snob imitates the manners, adopts the worldview, and affects the lifestyle of a social class of people to which he or she aspires, but does not yet belong, and to which he or she may never belong.
Dave Barnet, you most certainly are a SNOB.



Posted by Why Me?, 4th December 2008 6:07pm

It's a typical move by this government, appearing to give us all something at one moment, and then taking it all back the next.

Posted by Chris Florence , 4th December 2008 7:41pm

Lets face it folks, the will always use the motorist to get their money!

Posted by Tommy Mcinally, 4th December 2008 8:46pm

Well, I used to have some sympathy for professional drivers and the fight for lower pertol/diesel prices. But the lorry driver community has not half disappointed me. Earlier this evening, my car was hit from the side on the A1 by a truck driver. Who then failed to stop (the matter has been reported to South Yorkshire Police). I now face Xmas with having to take time off work, then pay a large insurance excess since I don't know (an probably never will) who the pig-headed arrogant driver was.

Anyway, I now have a large amount of sympathy for the arguments of Peak Oil! I think we SHOULD reduce oil consumption, not only because of Peak oil but also because of the THREAT TO THE ENVIRONMENT!

So, I think we should:

1) Tax road freight more, and invest in railways for moving goods
2) Stop spending on roads, and use car tax to fund more local employment
3) I work in electronics. If the Establishment listen to the truck drivers because of oil refinery blockades, all electronics workers facing redundancy (including myself) should BLOCKADE POWER STATIONS and stop coal etc getting into Drax etc. When the lights go out, let's see how the b******s manage without electronics :-P

Posted by Respect Akp, 4th December 2008 9:59pm

Yet another 'con' job by this incompetant Labour Goverment, they give with one hand whilst picking your pocket with the other.

We need to remember all their 'Bash the motorists' policies when the next election is finaly held.

Jeff

Posted by Jeff Edge, 4th December 2008 10:15pm

Well I'm voting for the Green Party

Posted by Respect Akp, 4th December 2008 10:25pm

With regard to the 2p tax on petrol, defered it may be, and the reduction in VAT, we are not going to be any better off, where is the extra money from? The average household? I travel 50 miles per day to earn my crust - public transport would take me 4 times longer and cost more than running my car. May I sugest to our right honerable PM (who is niether right or honerable) that he takes himself and his financial advisers off to his local supermarket and buy a new calculater to replace the abacus they are currently using as this one seems to be short of a few beads.
Whilst there could he offer the use of said abacus to the checkout assistants to calculate my shopping bill as I am sure it would be less than I am currently paying.
Gordon you need to re-do your sums, you are bleeding us dry. Perhaps the urine you are extracting has been put to some better use, can you run your car on it? Enough is enough.

Posted by Paul Holden, 5th December 2008 2:23am

yeahg hit the poor old motorist again, still its one way of filling the black hole in the cicil servants pension hole,

Posted by Geoff, 5th December 2008 8:27am

No surprises there then - in this climate where we need to travel further to find employment, where the cost of living, housing continues to rise who would expect the government to actually do something for the average working person / family?

Posted by Tristan Port, 5th December 2008 9:42am

Another decision by someone who is driven around in a minsterial limo and is out of touch with the reality of fuel prices.

Posted by Robin Wade, 5th December 2008 9:55am

As someone who has a mobility car, and lives on benefits I think it is disgusting that people, like myself who is dependent on a car has to get taxed, I think its bad enough others get taxed like they do anyway

Posted by Sue Payne, 5th December 2008 10:15am

Why are petrol prices still so high here. Both in the US and on the continent they are now much lower and in the states and Canada they are below what they were 3 years ago. Another case of RIPOFF BRITAIN again.

Posted by Mike, 5th December 2008 10:33am

As a motoring journalist with more than 40 years driving throughout Europe where fuel prices have always been lower than those in the UK and where they
have come down rapidly in line with world oil prices, the UK Government seizes every opportunity to penalize the poor old motorist and here we are once again having got petrol below the £ and diesel just over £ per litre the Government immediately add 2p per litre. The Chancellor and PM should be ashamed of themselves and should try living in the real world of being an ordinary motorist instead of swanning around in their chauffer-driven limos! Still, the next election is not far ahead "Darling!

Posted by Paul, 5th December 2008 11:16am

So, it's another case of spin to make our leader look good when all he achieves is proving his inability to run a country and its economy whilst retaining his own and other MPs inflated pensions. And, of course, the private motorist is the first to be hit in the pocket, followed by everyone else when the cost of fuel is factored into shop prices after the current discounting spree is over.

Posted by Chris Pooley, 5th December 2008 11:36am

This latest Government fiasco of giving benevolently with one hand and snatching back more with the other is a step too far for the majority of the long suffering British public. In my view the Chancellor has got it completely wrong again and is failing to raise taxes in the area where he needs to - from the obscenely Rich.

We have just had our economy, jobs, homes and lifestyles destroyed by the rich fat cats who manipulated the financial markets and made trillions of pounds out of re-packaging sub-prime mortgages as triple A investments and selling them world wide. In the process they have bankrupted some small countries and major investment banks and very nearly destroyed the capitalist system of the World. This is criminal and it's called fraud - it should be treated by World Governments as fraud - and the perpetrators brought to justice and have their assets confiscated and given back to the idiot bankers who fell for it all in the first place.

My point is this: temporary VAT change and bringing forward of the 2p hike in petrol duty is the Chancellor's pathetic remedy for stimulating our failing economy in answer to the national and global recession brought about
by the mis-selling I have mentioned above.

He's completely wrong; it hasn't got a chance of working because no one but the rich have any spare money to spend in the quantities that would make any difference, and not only the that - once again it's unfair. The poor, especially the motoring poor, get hammered yet again while the rich are so rich they just don't care.

It's not about Labour or Conservative - it doesn't seem to matter what the political colours of the Government of the day are - there is for all of them only one section of society that they select to pay for everything with their taxes and that's all of us who are not rich. One answer would be for everyone to bombard their MP with protest letters and leave them in absolutely no doubt that if you don't hear of them raising questions in the house of Commons condemning this latest fiasco and forcing a vote against the Government then we'll be voting them out of office at the next opportunity. Shake their own security - it's the only thing they understand.

Posted by Dave, 5th December 2008 12:08pm

It's not just Labour (although they are seriously wanting,) but all of these politicians of this 'nanny' state we now live, giving when on TV and snatching it back in reality.
It applies to everything now, give the pensioners an extra tenner at Xmas but cut the bank rates to nothing and their small but necessary 'nesteggs' diminish rapidly. People who have tried to save a bit honestly, destroy them.
Road tax, petrol has there been a time when these were put down by a government. Smoking , drinking as social harmless relaxing pastimes (not like the youngsters of today,) they pay for all also.
If you retained all the taxes from smoking, drinking and driving etc., and kept them only for treatment to those of excess in the first two (a minority in the past ) relative to those items and kept the road petrol taxes only for the relative building of highways etc., ............... there would be a lot of money left over in that kitty ..........
Politicians do not think out anything other than how they can lie cheat etc., to keeply their large undeserved salaries and expenses of double their salaries. If they're asked to think out anything, they use tax payers money to pay a committtee to do it and who usually fail them.
When are the people going to stand against this idiocy.

Posted by Jim Kerr, 5th December 2008 12:49pm

I agree with most of the comments on the blog, but sometimes I have to wonder if we British secretly enjoy being ripped off when buying petrol or diesel. For instance, all the filling stations here on Wirral get their supplies from Stanlow and therefore all pay the same price, but the prices we pay at B.P. and Texaco stations are always between three and six pence per litre higher than at Shell or Murco,yet they seem to get just as many customers.
And what about the big rip off that B.T call LINE RENTAL. What has line rental to do with the price of oil you may ask, so before you think I've been eating 'magic mushrooms' let me tell you.
In 1973 Israel was having a war with Egypt, the yom kippur one. The Arab oil producing countries placed an oil embargo on all those countries that supported Israel, including Britain.
Within a week or two oil prices had rocketed and created a world oil crisis.
The British government under Ted Heath were worried that the budget set for oil for the power stations may be exceeded so they put an Emergency Fuel Tax on all our utilities bills. Gas,Water,Electricity,and TELEPHONES which were all still nationalised at that time.
A year later (1974), the war was over. Oil prices had come down and stability was much improved, so the government, now under Harold 'this will not affect the pound in your pocket' Wilson ended the tax, but he allowed the utilities to keep taking the money except they could not call it a tax. This is when things like Standing charge,and Service charge first appeared on all your utilities bills. B.T eventually decided to call their share of this bonanza Line Rental, and you have been paying it ever since. For the past 34 years in fact.
It is estimated that B.T.has around 30 million lines,so if all these lines bring in twelve pounds per month in line rental,that implies an income to B.T. of over £ FOUR BILLION per year, in line rental alone.
Oh dear, I almost forgot to mention, you have to pay VAT on it as well.
And that's why I have to wonder. I have never heard anyone complain.

Posted by Roy, 5th December 2008 2:32pm

I really don't know what this government is trying to do to us. I appreciate that their motoring is free and paid for by us - the tax payer - but there is no need to crush us all at the same time. Time to get rid I think; and I don't mean the car.

Posted by Andrew Gorrie, 5th December 2008 4:02pm

the price of petrol per barrel has practically halved yet the reduction in petrol at the pump is barely a quarter... this does not add up and we are all suffering. The government must make the petrol companies charge a fair price or they will keep getting away with this scandal.

Posted by Vic Fell, 5th December 2008 4:13pm

There are a number of steps you can take to reduce your driving expenses while using you car. Here's a quick list of some actions you may want to consider.

*** Take the time to check your car's tire pressure monthly. Under inflated tires reduce fuel efficiency by 2% for every pound down. Under inflation also causes premature tire wear.

*** Drive at little slower on motorways. Cars use about 20% more fuel driving at 70 miles per hour than they do at 60 miles per hour.

*** Avoid driving fast in low gears. High speeds in the improper gear can reduce fuel efficiency by up to 40%.

*** Avoid using air conditioning whenever possible. Air conditioning reduces fuel economy by 10% to 20%.

*** Don't open windows when traveling at high speeds. Open windows can reduce fuel efficiency by 10%. Use the ventilation system. Also remember to remove roof racks which make your car less aerodynamic. save up to 2%.

*** Air con will add around 2% every hour.***

*** Avoid rough roads. (that's most roads in the UK) Driving on roads made of dirt or gravel can reduce fuel economy by up to 30%.

*** Don't let your car idle. Even on cold mornings, there's no need to let your car idle for more than 30 seconds. Letting your car idle longer is a waste of fuel, it's more efficient to turn off your car and turn it on again than to let it idle while waiting. (up to 5%)

*** Remove all excess weight from your car. (including the mother-in-law)Many people use the boot as storage adding unneeded pounds to the car's weight. This unnecessary weight reduces the car's fuel efficiency. (up to 15% depending on weight)

*** Try to accelerate gently, brake gradually and avoid stops when driving. Quickly accelerating, and abrupt stops all waste fuel. Try to avoid rush hour periods when you know traffic will be stop and go (difficult for most). In stop and go traffic, try to maintain a crawl.

*** Service your car regularly while paying special attention to oil and filters. Blocked air flow from clogged air filters will increase fuel waste. Also check your car's alignment since this can cause engine drag which will also increase fuel waste.

*** Periodically calculate your car's fuel efficiency. A loss in fuel efficiency is an indication of possible mechanical problems.

Try driving normally for a week, noting mileage and amount of how many litres you put in and stay on route as much as possible.

Then try week two implementing as many of the above as possible, you really will be amazed at how much you will save.

Posted by Steve M, 5th December 2008 7:04pm

We've been robbed again re the fuel duty and VAT and we're being ripped off even more when it comes to diesel. How come that when prices were going up a litre of diesel on cost 5 or 6p more than a litre of unleaded but now prices are going down, my diesel costs 14p, yes 14p a litre more than a litre of unleaded? somebody's making extra money somewhere along the line.

Posted by Colin B, 5th December 2008 7:29pm

What labour forget is, MP's are on around £60,000 a year so paying for petrol isn't a problem, the average U.K. salary is around £21,500 with many on far less than this so it's a bit harder for us 'working class' but hold up a minute, MP's also get paid for expenses i.e. traveling expenses, we don't, they also get "expenses" for a second home near their constituency, we don't! I have a £150 a month fuel bill just commuting to work and back in a 1.4 astra yet I don't get traveling or a second home "expenses". my only second home is my lorry as i spend so much time there just to earn a crust!

Posted by Daniel Synyer, 5th December 2008 8:11pm

I cant get a job where I live (unless I want min wage) and have to travel 62 miles round. if I dont get stung at the petrol pump I get it with the trains, they dont run on time very often, then there is the signalling isues etc. then when I arrive at work late, its chat time with my manager. the only ones laughing is the fatcats in Downing street. I remember when petrol was the more expensive fuel, I drive a deisel car, low emissions, better for the environment ( in our drive to save the planet), but there you go the deisel costs more than petrol. The thing is we will never beat them and they know it.

Posted by Alison Foyle, 5th December 2008 8:42pm

what a total disgrace again. we motorists are all ways being shafted with price increases.if all motorists stuck together and boycotted one petrol company a week they would have to drop prices or go under as most small buisnesses are doing

Posted by Anthony Hilditch, 5th December 2008 9:34pm

Has the government forgotten that fuel also plays a big part in the economic crisis. If we can sustain reasonable prices for fuel, the markets financial trouble will ease.

But OH, of course... we are forgetting that if we lower the tax/duty/VAT on one thing, we not only have to increase it on something else but we also need to increase national insurance and any other unnecessary and economically-destroying fees on top.

How dumb. You know, other countries are suffering from the crisis, but they must be looking at us and thinking, "how the hell are they coping when they are doing stupid things like this".

This country is an embarrassment to the world.

Posted by Luke, 5th December 2008 10:35pm

Is there a simple explanation why diesel has increased by approx 12 a litre over petrol during the last year, other than the obvious profiteering by the pfuel companies, the increase of course impacts all of us as it is the prime fuel for the haulage industry. The extra 12p also provides the chancellor with additional funds due to the VAT element payable.

Posted by Alan Hodgson, 6th December 2008 8:10am

This is typical with today's government. Give a little but take a lot. In order to help every one surely cut the amount of tax or duty on fuel. This will help bring down all commodities.
Once the 15% VAT is finished it will not go back to 17.5% I would estimate that 20% plus would be more like the greed that the Government will be looking for. And yes the big fat cats of society can then have even more money.

Posted by M.hunter, 6th December 2008 11:50am

Oil consumption forecasts slashed
By Javier Blas in London

Published: December 5 2008 19:34 | Last updated: December 5 2008 19:34

The world economy will consume in the next five years far less oil than previously assumed, the western countries' energy watchdog said on Friday in a further sign of the impact of the global economic crisis on commodities markets.

The new International Energy Agency forecast came as oil prices on Friday fell to a four-year low of $40.85 a barrel, down more than $2 on the day. Oil prices had suffered their worst week since January 1991, losing more than $12 in five days.


On 5 August 2004, UK petrol prices averaged 81.5 pence per litre, diesel prices in the UK are now the most expensive in Europe far outstripping prices anywhere else on the continent, says The AA Motoring Trust. One in five motorists now own a diesel vehicle in the UK, with drivers paying on average 26p a litre more than in other European countries.

Bert Morris, deputy director of The AA Motoring Trust, says: With fuel prices rising across the continent, many drivers in Europe are able to select diesel for cheaper motoring, a choice UK motorists do not enjoy as, uniquely in Europe, diesel is more expensive in the UK than petrol.

Diesel in the UK is averaging 82.63p a litre

(Figures taken from the AA Motoring Trust report 2005 regarding 2004 fuel prices in the UK)

*************************
Using the UK Inflation (CPI) calculator, 82.63 ltr in 2004 is equivalent to 89.7p ltr in todays money.
The actual price in comparison is 15p dearer.

Even allowing a slight variation this would appear to say, regarding diesel consumers (wait for it) "WE ARE BEING RIPPED OFF"

Posted by Steve M, 6th December 2008 1:50pm

Recipe for disaster.

The government is the mixing bowl.
Diesel is the recipe.
VAT, tax, duty and a large bottle of brandy are the main ingredients,

Add a small amount of supply with a large dollop of demand (do not overdo the supply)
Mix the VAT, tax and duty until mushy and hard to see, add the small amount of supply and demand and stir.
Using excuses, blend some refineries together (only use half)and pour into the mix then throw the other half away (too much refinery will make it non profit palatable)
Leave to stand until April (topping up with supply and demand if necessary) then add 2p worth of duty, mix, cover and leave to settle.
In October, repeat April's mix.
On Jan 1 2010, you can stir in the 2.5% tablespoons VAT and some more duty if you feel the taste is not quite right.
Your dish is ready, it will be far too rich for 90 percent of the population but the remaining 10 percent will swallow whatever the government serve and say "thank you".
Oh yes, the brandy. This is for yourself, I think you may need it!

Posted by Steve M, 6th December 2008 2:39pm

As a pensioner trying to make the best of my retirement and so on, the last thing I need is another "mirrors and smoke" politician trying to bluff me with misleading figures. These people are put there by us to look after our welfare, -well that's the theory anyway, - and yet it is difficult to believe that this is what they are doing. The sad part about is that they will go on the box and justify their actions.

Posted by Brian Wilkins, 6th December 2008 2:51pm



If you haven't heard the term 'Peak Oil'; brace yourself as you'll be hearing it a lot more in the years to come. It's been a whispered term for many years, much like "global warming" was back in the 60's.

In 1956, geophysicist Dr. M. King Hubbert predicted that oil production in the USA would reach its peak around 1970 and then go into a state of decline. He also predicted that global oil production would peak around the late 90's/early 21st century. He plotted the increase, peak and decrease of oil production on a graph; and his theory is popularly known as Hubbert's Peak.

Dr Hubbert also flagged with the world the issue not only of declining oil production, but the increasing cost associated in extracting what oil remained after the "low hanging fruit" had been picked.

There is no doubt that the cost of oil production in recent times has been huge - not only in the exploration and production itself in financial terms; but also in terms of environmental damage caused. Added to that has been the huge military expense and associated human suffering caused through wars that have been pushed on the public by their governments as being issues of national safety rather than their true motivation - control of oil reserves. The war in Iraq is a classic example of that.

Dr Hubbert was ridiculed by many when he released his research; but his predictions appear to have come true. USA oil production did indeed go into rapid decline around 1971.

Fact: we are consuming more oil globally and the trend will continue

Fact: it is not a renewable resource in relation to our consumption levels

Fact: countries go to war over control of oil reserves

Fact: oil consumption has a negative impact on the environment

Fact: gas at the pump continues to, generally speaking, increase in price

Fact: many plastics and other trappings of the modern world are made from oil

Fact: the world is running out of easily sourced oil; i.e. production using current technology has peaked, and what oil is left will cost more to pull out of the ground using methods most likely to be even more unfriendly to the environment.

Paints a rather grim picture for our oil addicted society doesn't it? If we're willing to invade a country for oil, how much more aggressive will we be when supply really gets tight?

How does food get to your table? Do you grow it in your yard, or is it trucked in to your supermarket? How do you collect it; do you walk to the supermarket or drive? How do you get to work?

How many affordable alternative energy vehicles are now on the market?

When the Iraq war and other geo-political issues pushed the price of oil to record levels; people stopped buying SUV's. Within a couple of weeks of a drop in prices; they went back to buying them again. It just goes to show how little we learn. We had a taste of what really expensive petrol was like, yet as soon as the pressure was backed off a little; we went straight back to our previous oil-greedy ways.

We won't learn, oil will have to run out or become so horribly expensive that only few can use it to any degree. What will it cost? How much will it impact on the cost of other items? How many more people will have to die and how much more will our environment suffer while we squeeze out the last viable drop of oil that the planet has to offer?

These are important issues to think about - don't rely on governments to provide the answers to a world without oil as they've all been in denial for way too long. Yes, there are renewable/alternative energy programs in place; but given the major role that oil plays in our lives; permeating just about every aspect; whether these new, cleaner technologies can be rolled out before we hit the real crunch is another question.

The time is now to start thinking about and making changes to the way you live so your life is not so oil-centered. Remember that a lack of oil extends far beyond just not being able to drive your car - so many other products, services and industries are based on oil.

Start preparing for a life of austerity. NOW!

Find local employment. Reduce your debts. Reduce your fuel consumption. Grow your own vegetables or buy from local suppliers. Exercise regularly. Insulate your home. Help your family, friends and colleagues to understand the implications of Peak Oil.

Posted by Peak Oil, 6th December 2008 7:02pm

Brown is at best devious and at worst dishonest. I have read a long and deeply researched biography on him, and I would not trust him with my morning coffee, let alone our country. As Chancellor he mismanaged utterly by not storing fat during the good times, and now that te bad times are here, the cupboard is bare. trouble is that there is nobody else of any party to replace him. His rebuttal of a referndum on Lisbon was traitorous.

Posted by Peter Beukers, 6th December 2008 7:25pm

.
End of Turkeys Could Fuel 'End of Civilization as We Know It. By Jackson, Kellerman, and a Peak turkey Live Science Senior Writer:: 23 November 2008

Opponents in a long-running debate over when the world will run out of turkeys squared off Tuesday in a crowded room of extremists, reaching only one conclusion: The supply of turkeys are fixed and the world economy will eventually have to wean itself from them.

The most dire and perhaps speculative forecast calls for global turkey production to peak next year -- specifically on Thanksgiving.

"Beyond Turkeys: The View from Hubbert's Turkey Peak" (Gobble and Wang) is due out in March. most scientists agree it is impossible to accurately pin down the amount of Turkeys in known fields and how many more will be found.

"This is not science," said Michael Lynch, a political scientist and energy consultant. "This is forecasting on a global scale regarding the continued production of Turkeys."

Lynch agrees there are problems with relying so heavily on turkeys, and he sees more price volatility ahead. But he argues that many smaller deposits will be found and they will add up to "a lot of turkey" over time.

If, as predicted, peak turkey has been passed, the super powers will be vying for supremecy, so controling any remaining turkey fields.

The possibility of using nuclear weapons is high on the agenda of all powers.

Even the most optimistic predictions of the effects of a major nuclear exchange foresee the death of billions of civilians within a very short amount of time;
more pessimistic predictions argue that a full-scale nuclear war could bring about the extinction of the human race or its near extinction with a handful of survivors (mainly in remote areas) reduced to a pre-medieval quality of life although any remaining turkeys will be unafected.

It is also thought as a result of meltdown a massive influx, from the earths core, will result in copius amounts of mince pies.

Posted by Peak Turkey, 6th December 2008 7:36pm

Typical Labout bloody Government! Stelth Tax after Stelth Tax after Stelth Tax! When will we ever learn????

Posted by Jan Sims, 7th December 2008 12:56am

The taxation proposed on Gasoline/Petrol/Mogas/Diesel is to be commended. The people who use/abuse energy (and all such consumables) should be the ones who pay the tax. The users should pay and non-users should NOT pay. All Governments need funds to govern properly (and the discussion is not if the Present Government govern properly or efficiently, but how they raise income to govern and from whom this income is generated). This fuel tax ensures that people (and in the UK there are far too many) who escape the tax net using methods that amount to tax evasion , and should probably end up in jail for their practices, will at least pay this fuel tax. 2p is far too little . maybe it should be 20p or even more. Of course this needs to be offset by tax reduction for the "ordinary person who works hard and pays taxes already. UK public transport maynot be the best but is very acceptable (compared to worldwide standards. Use it those who are energy hogs and beleive their time is so valuable, but will spend hours watching TV and in the pub

Posted by Peter.ayers, 7th December 2008 2:30am



I fully support increasing taxation on fuel!

Buy ONLY if it is coupled with the abolishion of Vehicle Excise Duty (road tax), for the following reasons:

The heaviest users pay the most towards road maitenance costs;
Naturally encourages economical driving (evident when diesel was £1.32);
Allows foreign drivers to make a contribution towards our roads;
Eliminates the high cost of VED enforcement by the DVLA.

Posted by Lauren Laverne, 7th December 2008 8:30am



Typical Noo Labour and their taxing policies.

Posted by Mark Potter, 7th December 2008 10:10am

We have the cheapest petrol in Europe before tax and the highest tax!!! This is just so bloody unfair. We also have the road system in total congestion, very poor road surfaces and the rail and short sea routes around our coasts underutilised. It is blatently obvious what we should be aiming to do but not to the present government. "Dave has a plan": I think that at the next election we need to give the oposition a chnce to get too work. The present government are just totally about grasping power and staying in office.

Posted by Harry Coad, 7th December 2008 11:45am

Its rediculous I need my car being a homecarer between the road tax and petrol tax increase its getting harder for me to keep my car

Posted by Karen Law, 7th December 2008 11:47am

As the price of a barrel of oil has significantly reduced to a level lower than when this government came in I think the actual price of fuel at the pump should be around 70p per litre. This incompetent lot are pressing the banks to pass on the difference in interest rates to thier customers and small businesses. What's good for the goose springs to mind, so why don't they pass on price reductions to us long suffering motorists. They're quick enough to increase.

Alan Mitchell

Bristol

Posted by Alan Mitchell, 7th December 2008 3:25pm
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