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

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11162 comments 50282 votes

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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stop moaning

Posted by Gordon Brown, 25th November 2008 7:13am

My blood boils, Yet again! It isnt just the companies that feel the hike on fuel prices. As a domicillery carer, (and there are many) its worrying every time you start your day. We just start to settle after the last round, Ding ding round 2!! Care users NEED Domicillery carers, who inturn need to be able to get there.
CJ

Posted by Carol Jacques, 25th November 2008 7:13am

Let's get a sense of proportion here - this is *less than half a penny* per litre so it's not as if motorists are funding tax cuts for the rest. I am a motorist in a rural area so I do a lot of miles and don't like price rises, but this is nothing.

In any case, fuel duty NEEDS to go up in the longer term to help reduce carbon emissions - otherwise we won't have much of a world to drive around...

Posted by Richard, 25th November 2008 7:13am

Once again the government place a higher priority in what the press will lead with a head line, hoping that we poor uneducated masses have no idea what the real impact will be. It is not the cost increase that annoys me as much as the conception that we are too stupid to understand the full impact.

Posted by Stuart Nicol, 25th November 2008 7:14am

Typical hit the fuel which has a knock on effect to everything that is transported by road.

Posted by Andrew Baker, 25th November 2008 7:14am

Labour take with one and take with the other ..

Posted by Anthony Ferrara, 25th November 2008 7:14am

Labour have taken the country to the wall yet again, when will the Idiots who vote them in ever learn, labour is not for the working man any more they are just out for their own good, prices up unemployment up will it never end?

Posted by Andrew Gray, 25th November 2008 7:14am

i am 43 yr old and have voted labour since i was 18 unless gordon brown goes i shall not be voting for them anymore which means i will not be voting at all cause there is no alternative party to vote for, bring back tony blair

Posted by Mallyboy, 25th November 2008 7:14am

This government are a joke - I cannot stand to look at Alasdair Darlings bushy black eyebrows and listen to the drivvle that comes out of his mouth just to get votes any longer - its time for the British public to speak up and not be treated like idiots!!! They as ususal hit the hard working brits the most the ones who work and do not collect benefits the ones who keep the economy afloat, the ones who at one time were proud to be British now I am ashamed!!!

Posted by Clairendy, 25th November 2008 7:14am

I'm just looking forward to the next election as thats when we really get to make our feelings known. Give with one hand and take away with the other, that should be labours new slogan.

Posted by Glen Magee, 25th November 2008 7:15am

Just Typical - I was just getting over the shock of fuel prices coming down, thought it was too good to be true! as usual the government target what we cant live without.

Posted by Avelynne Tideswell, 25th November 2008 7:15am

Once again the chancellor hits the motorist.

As a pensioner, it gets harder and harder to keep our car on the road. As it is it spends most of its time in the garage. We only use it for essential trips.

Its months since we actually ent for 'a ride in the car' out into the countryside.

I budget £26 a month to run our Skoda Fabia, its very fuel economical, but when its gone its gone.

We are more fortunate than most in that we have a good bus service to the local shopping centre and also into our local town, but the day will come when we will no longer be able to justify paying the insurance and fuel costs and one of our forms of independance will have to go.

Posted by Anne Arthur, 25th November 2008 7:15am

I cant believe yet again this govement is messing up, I far as I can see the down turn in the economy started when fuel started to rise pushing up the cost of transport and thus pushing up food and other goods priices.
This then in turn stopped poeple spending as much. Just when we thought we were getting some rest bite from high fuel prices they go and do this. Who want's a VAT decrease?? god only know's.
Keep fuel down and put the money back in the poeple's pockets this will get the economy going again. I'ts fuel bills that caused us to stop spending we can't afford everything we have to cut back some how.

Posted by Brian Baker, 25th November 2008 7:15am

I am not suprised, after all what do you expect from this excuse for a government.

They have mortgaged the house to buy a bucket to try and stem the tide of recession, and it's the motorist who will be picking up the bill.

Posted by Dave French, 25th November 2008 7:15am

I was persuaded by the hype a few years ago to "use a greener more efficient vehicle", ie I bought a diesel vehicle - since then I've been paying more for the privilege, even costing more to run the vehicle despite improved fuel economy! What is it with this government that diesel is so much dearer than petrol, it never used to be that way. In France diesel is cheaper than petrol and cheaper than here, in Spain even more so! Cannot be anything to do with distance from distribution centres - just tax imposed by this government. How on earth can individuals and businesses can hope to carry on with paying the swingeing taxes imposed before prices spiral evermore upwards!

Posted by Ian Perry, 25th November 2008 7:15am

We motorists in this country are far too complacent. We should speak and act with one united voice like they do in the USA. We should BLOCKADE Downing Street and Parliament Square until Brown agrees to REDUCE fuel tax duty PERMANENTLY.

Posted by Reg Gray, 25th November 2008 7:15am

Yet again the motorist is adversly effected by the recent changes by the Government.

No wonder so many people are leaving the UK for pastures new. I worry for my children and grandchildren in this country. The lowest paid people in the country are worse off again.

The abolition of the 10p tax rate will see the end oth this Government and rather than uturn on the biggest mistake they have made to date, they juggle with the tax threashold instead.

Now we are to be tax more again through fuel duty - well done!!!!

Posted by Robert Alston, 25th November 2008 7:15am

Total incompetence as usual by Herr Brown and his henchman Darling (what a stupid name for a chancellor!). Some of us don't have public transport available to us at all and the only alternative is the car. Could have made a much bigger impact on spending by scrapping the ID card - I believe this could save around £8billion, more than enough to compensate. Roll on the next election!

Posted by Roy Oakley, 25th November 2008 7:15am

What this country now needs is a revolution the people must make a stand against all this underhandedness, it is time to say enough is enough!!!

Posted by Keith Williams, 25th November 2008 7:15am

Wow our goverment never cease to impress me on how clever they are!
Reduce vat so you save £2.50 When you spend £100 But put tax on fuel so you pay £2.00 when you spend £100 on fuel! Mmm so if everybody could afford to spend £100 on stuff they can do with out they would save £0.50 But in the real world where we don't have the spare money (Because it all goes on fuel!) We have just been delt yet another kick in the balls! Thanks for helping to criple the country! We should vote in prostitutes they couldn't screw us half as much.

Posted by Paul Saxton, 25th November 2008 7:16am

Doesn't matter which political party's in power they'd all do the same. Motorists are an easy target to help pay off/fund national debt - the options: pay the price or park your car and take public transport. If we all did this then an increase in tax would be applied on something else ... income, inheritance etc
In a 'buy now, pay later' global society we're all paying for it now!!

Posted by Paul, 25th November 2008 7:16am

No wonder we are called a nation of moaners, yes petrol is expensive but deisel is 10p dearer at most petrol stations, so Get Real you have to see the big picture, the whole world is in a financial mess and we are all having to pay for the incompetant banking section workers, who whilst making this mess enjoyed a large salary for doing it

Posted by Mari King, 25th November 2008 7:16am

Typical Labour government. Socialist policy was, is and always will be TAX and Spend.

Posted by Barry Shandley, 25th November 2008 7:16am

If we really want to get petrol prices down use this forum to tell members to boycot all Shell sites for a week. Then repeat this process by not buying Esso for a week. There would be so much petrol about that a price war would follow. People have the power to stop these price rises if they stick togeather.
Roger

Posted by Roger M Rogers, 25th November 2008 7:16am

INCREASING THE PRICE OF FUEL ONLY INCREASES PRICES ALL ROUND WHICH DOES NOTHING TO BEAT INFLATION, ALL OF US MOTORISTS MOAN ABOUT IT BUT UNTIL WE ARE PREPARED TO TAKE ACTION LIKE THE FRENCH DO,THEN WE WILL STILL DO WHAT WE DO BEST AND THAT IS KEEP MOANING.

Posted by Chris Dallen, 25th November 2008 7:16am

Overall the price of fuel has gone down. The price of a barrel of oil has reduced greatly over the last month or so...How come the pump price mains high thereby creating higher VAT....I don't mind pairing a fair price for the fuel I use but I dont think itsc fair to pay over the odds.....

Posted by Keith Lloyd, 25th November 2008 7:16am

Typical, hit fuel which has a knock on effect to everything transported by road. So the cost of everything goes up.

Posted by Andrew Baker, 25th November 2008 7:17am

What's happened to the price of diesel? It used to be 5p a litre cheaper than petrol now its 15p dearer - makes my choice of a diesel (ie more fuel efficient/less polluting) car a nonsense! We're being ripped off - again.

Posted by Tony Ford, 25th November 2008 7:17am

We are, as a civilisation, in the midst of our greatest challenge to date in the fight against climate change. One of the causes is our love affair with the automobile and its resulting pollution. Yes, we could build ourselves bypasses around towns and cities but at what cost.

I fully agree with the comments by Peak Oil

Posted by Roger, 25th November 2008 7:17am

I totally agree with "The Oil Drum" that we cannot expect preferential treatment for motorists or the transport industry. The government must recoup the borrowing that will find the vat and other tax cuts so in the long term personal taxation and petrol taxation will rise. It must also encourage us to reduce our reliance on a petrol economy which has is suffering a hiatus as people cannot afford to buy more fuel efficient cars.

Posted by John Broomfield, 25th November 2008 7:17am

Richard Turpin wore a mask.

Posted by Philip Walsh, 25th November 2008 7:17am

This is enough don't you think? We should all reduce our use of oil to really pull down the prices of oil so whatever they do with VAT or oil tax we won't be that much affected. It's difficult but realistic. "Supply and demand" lets pull the demand down...right down.

Posted by Ercere E., 25th November 2008 7:17am

How much more do we have to take here!?

Gordon Brown, allegedly the most successful 'Iron Chancellor' of the modern age!?.......my a..e. The deep seated rust has corroded its way to the surface and is now flaking off his handling of the UK economy in lumps.

The banks, HM Govt and UK Plc are discredited, broke, corrupt and too inept and apathetic to get us out of this mire. I suspect the last one out, won't need to turn the lights out.

Posted by Bill, 25th November 2008 7:18am

Well, Prudence didn't save any of the multitude of taxes he hijacked over the past 10 years or do, so how on earth can we trust these idiots now? When petrol prices rose this year, EVERYTHING was affected: food, clothing, the lot. And he thinks this move will get people spending? Which planet are they living on?

Posted by Beverley Thompson, 25th November 2008 7:18am

The government has been waiting for this opportunity to clobber the motorist
once again as soon as the crude oil price moves down. The thing is they treat us like idiots, thinking that they can disguise this rise as part of a general cut in VAT. They will find that we are not so stupid at the next election and that the motorist has a loud and powerful voice.

Posted by Tom Pascoe, 25th November 2008 7:18am

Another stealth tax from a desperate challencor in a failing government. The fact is they are taking an enormous gamble with the economy and we (the taxpayer) are the chips! How will more fuel duty (and weak sterling) help a fuel-dependant economy?

Posted by Rob Sutcliffe, 25th November 2008 7:18am

This is yet another example of backdoor taxation increases.

Posted by Chris Weaver, 25th November 2008 7:19am

Thieving gits!!!!

Posted by Glenn Davy, 25th November 2008 7:19am

Labour cares for the low paid and disabled - I think not - Labour cares for Labour - who had a massive wage increase then told us to be frugal?

Posted by David Spearman, 25th November 2008 7:19am

Labour is no good get them gone

Posted by Robert Sheppard, 25th November 2008 7:19am

It only seems a few days ago gordon brown was pleading with oil producers to bring oil prices down. Did we do anything to help, "NO". We have one of the highest levels of taxes on fuel in the world. but did he reduce it again, "NO". But as soon as price do come down he the increases the tax. Rip off britain strikes again.

Posted by Paul Rowley, 25th November 2008 7:19am

And people still voted for Labour and I am sure will do so again. Its time for change.

Posted by Garth Rozario, 25th November 2008 7:20am

The price of crude oil is now 1/3rd of what it was a few months ago, yet the forecourt price needs to go up becvause of a duty increase. INCOMPETENCE comes to mind. Whoever voted Labour is responsible for a government that rewards incompetence with fat bonuses, increases expenditure and will leave the Tories to sort it out after the next election.......I wonder if you will ever vote Labour again. Make no mistake, this is all political!!

Posted by Keith6646, 25th November 2008 7:20am

It's the same old story let's got the motorest which hits every body

Posted by Carol Churcher, 25th November 2008 7:20am

The government never have any other ideas than to hit the working class.

Petrol, beer, cigs up again. What's new?

I would like to see an englishman running the government next time.

Posted by Philip Walsh, 25th November 2008 7:21am

Not only is the tax going up again ..but is it me or is the gap in price between unleaded and diesel slowly growing.
If the Governments actions are meant to supress consumption why not encourage Diesel users who get more m.p.g. ?

Posted by Andy Botting, 25th November 2008 7:21am

If the government stopped half the payments on the welfare state then we wouldnt have this problem

Posted by Terry Atkinson, 25th November 2008 7:21am

Scumbags. One of the reasons why they say they're cutting VAT is to boost consumer spending. So what's 2.5% off say, a £500 telly? £12.50! An annual domestic fuel bill over that 13 months: £25! £1.25 off a £50 shirt? Big deal!!! In the meantime we get hit with the permanent fuel duty rise? It could be read that this VAT cut was just a smokescreen to lob a bit extra on fuel since now that the price has come down they're missing out on some revenue they'd become used to...

At least I can say I've never voted for these tossers (not like any of us got to vote for/against Brown anyway) and I never will! It's a joke.

Posted by Abo, 25th November 2008 7:21am

this government haven't got a clue and will bankrupt our country with their insane financial policy and ignorant leadership! - problem is that if this gamble fails then the next party will be left to pick up the pieces and it will take another 3 terms to get back to status quo.
petrol should be coming down much lower than it is - vote with your feet! - EMMIGRATE!

Posted by Mike, 25th November 2008 7:21am

Tax is far too heavey now without any more increases,the sooner we vote this govement out of power the better the country will be run

Posted by Anthony Jamieson, 25th November 2008 7:21am

Typical of this labour govt. Try to soft-soap you with the oh we are reducing taxes while sneakily introducing other charges...why anyone voted them in in the first place is beyond me! Did everyone forget the mess they made last time round? Strikes, 3 day weeks for school...country was a shambles and getting there again fast!

Posted by Fiona Smith, 25th November 2008 7:21am

Is anybody really surprised ? As ever, a Labour Government promises much and delivers very little (but charges more for delivering it). They have always given with one hand - usually to those who don't really contribute - and taken away a larger chunk from those struggling to improve their lot. The VAT reduction is a stupid gesture that wont work but gives them the excuse to increase taxes in other areas. The fuel increase is just typical - they are hoping we wont notice because the price of fuel has been falling and thus the tax increase will be masked. I do not appreciate being treated with contempt by a government which I , and the majority , did not vote for. I can't imagine many will be voting for them next time but they dont care.

Posted by Ken Sheppard, 25th November 2008 7:22am

Flaming typical.. Screw the motorist yet again. There is an anagram of Alister Darlings name that is very apt. (A list darn lier). Help us out of a hole, like hell. My fuel bill goes up, my ni goes up. If fuel is more expensive then food delivery costs go up. Its ok cutting VAT for 13 months but in my weekly shop the only item with VAT on it is ....... oh yes, chocolate biscuits. Thanks for nothing Gordon.

Posted by Iain Johnson, 25th November 2008 7:22am

Are we supprised? This Government is based on lies and high taxation, not in helping the general public. Yes lowering the VAT by 2.5% is a good idea of course to get prices in the shops down, but wait, increase the fuel duty?? SURELY THAT WILL PUSH THE PRICES IN THE SHOPS UP!!!!. All goods sold have to be transport by ROAD to the shops by VEHICLES THAT USE FUEL!!.
LABOUR PARTY = DIMWITS. Best they go back to school and study economics!! or at least resign from power.

Posted by Barry George, 25th November 2008 7:22am

Ya allllllllllllllllllllllllllll alota wankas!

Posted by Yeh Mon, 25th November 2008 7:22am

For some reason the government cannot get it through its thick skull that higher fuel costs have a large knock-on effect to the economy. Everything is transported by petrol burning vehicles. If the government had only reduced the rate of fuel rather than anything else, I think the UK would have seen a nice reduction in the costs of food, clothing etc.

Posted by William Rich Amaden, 25th November 2008 7:23am

we may spend more ,if we can afford to get around in our cars.so reduce the duty on fuel.if i could reduce the delivery cost to my business i am more likely to pass it on.it is too costly to pass this vat cut on.

Posted by Michael Dowling, 25th November 2008 7:23am

In case you all forget, the LAST time labour were in power they left they left the country with MASSIVE debt and it was the Conservatives that managed us out of it. It was only a question of time before labour reverted to form. SPEND SPEND SPEND, DEBT DEBT DEBT. The only problem is that it is OUR money and WE will have to pay it back and it will be a conservative government that has to do it.

Posted by Ernest Ormes, 25th November 2008 7:23am

If you were in debt would you borrow to get out of it or would you cut back on the stupid things to pay it off
This goverment is putting us into even more debt and i personaly am dreading it when they have to eventualy rob us of even more of our hard earned cash

My husband and i work twelve hour days to make a decent living , but we still have very little to ourselves due to paying off our debts so why cant they find a better solution

And my husband has to travel to work very early in the morning before buses are on the road so this petrol hike will put a strain on us even more
I say time to get the houses of parlament in order Get in someone who can sort this mess out after all a lot of it is Browns doing

Posted by Sharon Pl Kelly, 25th November 2008 7:23am

There is no better way to stimulate the economy than with a feul tax cut. Forget the income tax reduction or VAT just scrap the duty on petrol/deisel. This would make all deliveries cheaper, all raw material cheaper, all prices cheaper and would encourage people to travel and BUY more goods.
The cost of feul is stopping growth and helped cause this recession. With no fuel tax it would generate spending at all levels and it would reduce prices without 'deflation' because the price reductions are not caused by the recession but by cheaper basic raw material.

Posted by Tim Rudge, 25th November 2008 7:23am

The disgrace is charging more for diesel than petrol. It is less refined and removed from the process earlier than petrol therefore making it cheaper to produce, so why is it more expensive at the pump??

Where I live unfortunately public transport is not an option - caned again!!

Posted by Tim Blagden, 25th November 2008 7:23am

This stealth is typical of Labour. Remember the 10p tax rate fiasco ? However, not all will remember the announcement of car road tax going up to £400/year for some cars by 2010 - because it wasn't even mentioned in the speech of the budget when it was decided !

Posted by Peter Green, 25th November 2008 7:23am

Can anyone believe what this Labour Government say. They knew what was going on globally and did nothing to protect our economy. They think they can get away with it because of the wall in the price of a barrel of oil will hide the increase should the oil companies pass that decrease on. Bet pressure is put on the oil companies to decrease their prices for 1 December

Posted by Brian Smith, 25th November 2008 7:23am

10 years to wreck our economy, blaming every other country for the problems that they have caused, creating thousands of 'non' jobs in government whilst those who actually make something of value are taxed into poverty. This is YOUR country, paid for in the sweat & blood of YOUR forebears - WE are letting them get away with it. I suggest that we all speak our minds and get active before our right to do so is finally eroded away. This government has to go!!!

Posted by Alan Lucraft, 25th November 2008 7:24am

The government has no right to tax fuel at all (or anything else for that matter). Its despicable targeting of fuel will help further ruin our economy, and will do nothing at all for the environment. This government is motivated by a nasty combination of social engineering and blind panic. Every petrol station ought to put up signs saying how much of the pump price goes to the government.

Posted by Valda Redfern, 25th November 2008 7:24am

Yes Mickey Mouse Government is what we have. What an apt name Brown has, yes he is putting us all in it up to our necks.

I see he spent tens of thousands of our money to decorate his rent free flat in Downing Street - no wonder we are in the Brown!!!!

They are nothing more than a bunch of crooks!!!

Posted by Mickey Mouse, 25th November 2008 7:24am

The motorist is always a good source of income and the govenrment know this, we will always need, and use our cars. or so he hopes

Posted by Alan Clark, 25th November 2008 7:24am

I use diesel and cannot believe the difference between petrol and diesel in price - it's the widest it's ever been. I drive two days a week from Leeds to Barnsley for work and was just starting to appreciate the general drop in prices. My other half uses his car as a service engineer every day for work. The firm had not increased its mileage allowance to cover the fuel increases, so the recent falls have been most welcome for him.

I agree with comment 28 - get rid of them. They are taking the mick, to say the least!!!!

Posted by Helena Watkins, 25th November 2008 7:24am

I am afraid my comments would not be pleasant to see on paper,but just to say I think this government's days are numbered

Posted by Philip Lindop, 25th November 2008 7:25am

Like it or not we're a transport dependent economy. And like it or not that means road transport thanks to the rail network being destroyed by Beeching and decades of asset stripping. This is down to DECADES of mis management on the part of governments

All this airy-fairy greenwashing which is in itself just a con to find more ways of taxing the public will have one effect and one effect only. It'll cripple the economy, it's cripple Britain and on a global scale lead to economic collapse and eventual anarchy.

NOTHING of any relevance has been done to ease the crisis. An end to the war on motorists and moves to FORCE the banks to make finance again should have been the first priority. Next the end to wasting public money on big-brother projects and pointless wars which serve ONLY to massage the egos of our modern day robber barons and divert public money into their pockets and that of their cronies.

Yesterday's announcements only reflect the CONTEMPT our current crop of politicians of all parties have for the people who keep them in the style to which they've become accustomed.

Posted by Matt Quinn, 25th November 2008 7:25am

When I first heard about this I thought someone was having a laugh with me. But then I remembered we were dealing with Darling & Brown etc.

Posted by John Hunter, 25th November 2008 7:25am

The government have suspended the last few 2p tax rises for obvious reasons, and have now suspended this one until 1 January 2010 - is it such a bad thing 2p extra a litre? Prices shot up 20-30p a litre over the last few months and everyone coped, maybe its a good thing having sky high oil prices, at least then you can't blame the government for it. The time has arrived now to start the invetment needed in alternative technologies and get away from our thirst for and dependence of oil. One thing all you having a go at this government should remember is, who introduced the fuel escalator that got us to the point of over 50p a litre fuel duty in the first place. Thats right, you will have an alternative at the next election, and maybe the grass is "greener" on the other side, more green taxes that is!

Posted by Glenn Thompson, 25th November 2008 7:25am

Incensed? Damn right!

Come on - spread the work - kick this good for nothing, unelected disgrace out at the next election - make yourself heard - come out and vote against this lot before we are totally finished!

Posted by Gee Kondel, 25th November 2008 7:25am

Whilst I hate that fact that the government are yet again putting the costs up for us poor motorists, i dont think that we can solely blame labour. Whoever is in power thinks of themselves and shafts us motorists. What we need is a government that has balls to change the VAT rates in a big shake up. Put VAT on everything, but have 4 or 5 rates (and yes I know that's going to mean a lot more paperwork for us all), but essential food items would still be Zero, other things would have a low rate of VAT and luxury items (petrol/diesel isnt a luxury!!!!!) would have a high rate of VAT (Big cars etc). If they did this, then all other taxation could be cut - even road tax!!!
Ah well.... rant over and now it's time to wake up and think was it all dream???

Posted by Richard H, 25th November 2008 7:25am

This price rise affects everyone. Everyprice will rise.

Posted by Angee Steel, 25th November 2008 7:25am
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