13.02.08 Fuelling inflation

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Do you think scrapping the 2p fuel duty increase will help cut inflation?


Inflation is currently running at the highest level since June last year, and rising fuel costs are to blame – that's the conclusion of the latest report on inflation by the Office of National Statistics (ONS).

The two indicators of inflation, the Consumer Prices Index (CPI) and the Retail Price Index (RPI), both show an increase. CPI puts inflation at 2.2%, up from 2.1% in December, while RPI shows inflation rose from 4% to 4.1% over the same period. It's the fourth month in a row that inflation has exceeded the government's target of 2%

The report points the finger at a number of factors including food and drink prices, but says “the largest upward pressure came from an increase in the price of road fuels.” The national average price of unleaded rose 1.3p in January alone, taking it to a total of 103.9p per litre. This time last year a litre of petrol cost 87.5p.

High fuel prices drive inflation because fuel is a fundamental to the infrastructure of the UK. Our food and basic goods are transported using it, and if the price goes up, so does the price of our goods. A small amount of inflation is healthy for the economy, but too much and we start to run into problems - missed mortgage payments, repossessions and unemployment.

Worse still, the report's inflation figures don't take into account the impact that the energy price rises in January will have, because the current model assumes it will take up to 4 months for the price rises to take effect. The full effects of inflation may also have been dampened by a decrease in clothing costs and cut-price offers on the High Street, which effectively offsets the problem of high food and fuel. Economists are warning that this, combined with two further 2p increases in fuel duty planned for April and October, will mean inflation will hit 3% by the end of the year.

The freight industry sent a letter this week to the Chancellor, asking him to scrap the 2p a litre increase planned for April, and in a letter to the Daily Telegraph, 11 leading business figures argued that they were being hit simultaneously by a slow down in the economy and rising fuel costs.

It said: "At 50.35p a litre, UK fuel duty for diesel and petrol is already the highest in Europe. Indeed UK diesel duty is double the EU average rate of 25p a litre. The chancellor now plans to increase this by 2p per litre from 1 April.”

"Such an increase will generate further serious difficulties for the transport and forecourt industries, business drivers, those dependent on the car, and for businesses or individuals in remote or rural areas with no alternative transport options."

Have you noticed an increase in living costs? Are you worried about the effect that further inflation rises will have on you? Do you think the Bank of England is capable of controlling inflation?

Your Comments

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Welcome to Treasure Island ! (No, not for you and I brother) We are here to be systematically bled for the benefit of the few. Government figures for inflation, if we can believe them, include rises caused by the self same Government. Public Transport in my area is exactly the same as it was 45 years ago, i.e. diabolical. I know, I have personal experiences !

Posted by Lloyd Martin Hartles, 13th February 2008 6:29pm

its not just the petrol thats going up its gas and electric and council tax and water all its about now is bigger profit for all these companys you see it every year bigger profits made this year than last year thats cause the price that they buy at is going up but they put that bit extra on to us just to make that bit more money

Posted by John, 13th February 2008 6:29pm

This comment has been removed as it was found to be in breach of our Blog Policies.

The current fuel prices are absolutely ridiculous - just another ever increasing factor to a famillies annual budget (which is probably, if like me, in the thousands) constituting billions annually for the governments purse. What the hell do they do with it?
If the government want to charge me(all of us) such extortionate fuel prices and for me NOT to get angry about it - show me the road infrastructure without the potholes, the inner towns and cities without vandalism and an emergency service that can cope!
unbelievable - I say let the lorry drivers barricade the gas stations again before the government come up with another outlandishly pathetic excuse to line their pockets.
Bring on the electric/hydro car! 2 Jags Brown may use the 'green emission' card to placate drivers fuel price fury, but if he was so much of a fan of green then the electric/hydro engines would be in full production - but alas they're not so lucrative on the fuel tax are they Brownie?
Someone asked me the other day: "if you had a time machine and could go back to any time you chose, what when would you choose" I said "1994, just before the government took the biscuit on fuel prices!"

Posted by Stephen Cook, 13th February 2008 6:29pm

Think about this-

You get paid and you get TAXED on your wages
You buy a car and it has VAT on it,
But before you dive it away you need a TAX disc,
And insurance which also has a TAX on it
Now you need to fill it up which has 80% TAX on it,
When it needs work you are charged VAT,
Drive in to London to the Congestion Charge (another name for TAX)

I think there is a comon theme running here,

Posted by P Johnston, 13th February 2008 6:29pm

Couldn't agree more:- Fuel prices up by 19% recently, staple foods up by more - up to 85% in some cases!! As a pensioner I can't see how inflation could possibly be 3%!!!!

Let's face it, fuel costs affect practically everything we need on a day-to-day basis.

David

Posted by David Fisher, 13th February 2008 6:30pm

the ever rising fuel prices are crippling me financially as i have a seventy mile round trip to work each day.The sad thing is if i was self employed or a buisness i could claim tax relief,but as i am an employie i cannot.
If this trend continues i will have to consider giving my job up,then the state can keep me,instead of me keepoing it as it feels lately!

Posted by Billy Foster, 13th February 2008 6:30pm

Indeed. The quicker we get Gordon Brown and the rest of this government out of office the better. I just can't believe that just because we have seen our house prices double in value (or more) in the time Labour have been in office people just can't see the tax, tax, tax that this lot stand for.
GET THEM OUT!

Posted by Paul Bostock, 13th February 2008 6:31pm

Disgusting.....once again hit the motorist as we are an easy target.
We all come on here with all these good ideas, but 90% of us will do nothing....like we have always done!!! We bend over and get shafted every which way the government choses.
We are living with these increases to pay for foreign nationals to come here and abuse our system.
Labour is ruining this country....the rich are getting richer and the poor are getting poorer.
As soon as i have the opportunity to get out of this dive im going to grab it with both hands and never look back!!!

Posted by Robert Purdon, 13th February 2008 6:32pm

"Our Constitution is in actual operation. Everything appears to promise that it will last; but in this world nothing is certain but death and taxes." Ben Franklin

Posted by Ben Franklin, 13th February 2008 6:32pm

I thought that the whole reason for us joing the E.U. was for "a level playing field" to quote the politicians. Well these same politions need to look at this field again because its tipped nearly upright with England paying most for petrol, food, beer, wine and cigarettes and we are taxed almost into extinction. We soon won't be able to afford to go to work.

Posted by Christine Coe, 13th February 2008 6:32pm

As a mother of two I am no longer using my car because I cannot afford the fuel. My weekly grocery shopping is now courtesy of Tesco delivering direct to my door, £4.50 per delivery. So overall my fuel costs shall be £234.00 as per delivery charge from Tesco.

My partner is self-employed and travels all over the country, he has now put up his prices to accommodate the rising costs of fuel. Lets hope he still gets the jobs now his prices have gone up. All companies must now be feeling the snowball of everyone increasing their prices, where will it end??

A big avalanche on our country. Who will suffer? Us!!!

Posted by Teresa Holman, 13th February 2008 6:33pm

It is a sorry state of affairs that we are being forced to pay higher rates of increase in anything we buy the life is being squeezed out of us, being a family we have now pulled in the belt tightly and when purchasing fuel we use certain shops to try and gain something back in the way of loyalty points this in turn does ease on the shopping bill so we see it as a (little) way of pay back to us. Will it ever end.

Posted by Mark Sparham, 13th February 2008 6:34pm

make public transport half the price that way will take more traffic of the roads.where does all the tax money go because it does not go back on the roads.so it must go into Mr browns back pocket.

Posted by Daniel Dunn, 13th February 2008 6:35pm

Until the Brit's are prepared to stop whining and do something about things, the government will continue to take the urine! If this was the Yanks, we'd have had an assination by now. And they're screaming about a 3 dollar gallon! (work that out)

Every guided missile into Iraq to maim and kill women and children, could have paid for all the health, fuel and social policing costs we ever had!

So watch who you vote for, you may get that which you wish for.

Posted by Angela Elliott, 13th February 2008 6:36pm

By allowing vehicles that emit less than 120g/km of CO2 to enter the capitol free of charge from October 27 to be excempt from congestion charges, won't this simply encourage more traffic into the city making a nonesense of the whole basis of the congestion charge? ie. reducing congestion. As others have already suggested the charge was always simply a way of raising money and nothing to do with easing congestion. Yet another money raising scam by our goverment.

Posted by Mike Wood, 13th February 2008 6:36pm

High fuel prices are driving inflation, I drive a diesel car & travel 30 miles to work each day, I live in a rural area so public transport is not a realistic option, to make matters worst I have to purchase oil for heating this has increased 60% in the last six months.

Posted by Geoff Taylor, 13th February 2008 6:37pm

103.9 / ltr - I wish!

I travel 70 miles a day to and from my office - its obviously more expensive.
Currently perstering my boss to let me work at home 1/2 days a week to get some of the cost back.

HMG cant have it both ways - they are the ones getting the benifit from price hikes not the retailer or producers.

Posted by Chris, 13th February 2008 6:38pm

When he doubled the airport tax Gordon Brown said it would save hundreds of tonnes of CO2 emmissions. This shows what total nonsense he uses to justify tax increases

Posted by Stanley Matthews, 13th February 2008 6:38pm

Of course this ever upward spiral in fuel prices is hurting everyone but remember who is responsible for most of the pump price. Gordon Brown no less.

There are enough of us so why does not someone, in a position to organise it, arrange for specified days when people abstain from buying motor fuel?

Posted by James Brunt, 13th February 2008 6:38pm

As a pensioner, I feel that the way Brown and Blair between them are succeding in destroying our once great country of England in the short span of 10 years, this petrol rip-off is just one more nail in our coffin. The dearest fuel prices in the world, what a legacy. Motorists conned into going green and buying diesel cars, and look at the price of diesel!!! Brown bleats about the cost of oil per barrel, but that has decreased now, have our prices?? and all this when the £ was at it's strongest and the $ at it's weakest!! are we supposed to be stupid? Our problem is we have no way of redress except in the Vote or referendum , that has also become a farce with Europe.

Posted by Terry Crimmons, 13th February 2008 6:39pm

The most annoying thing, is that Brown and Co. keep telling us that compared to historical prices & inflation, fuel is cheaper than in the 90's... but come on, who among us regularly gets above-inflation pay rises that are sufficient to pay for increases in fuel (inc. gas and electric), Council Tax and various other taxes without feeling like we're paying more?!

Posted by Mike Osullivan, 13th February 2008 6:40pm

Oil went down to $87 a barrel in jan but did fuel go down did it heck, just what you expect in rip off britain

Posted by Colin Halls, 13th February 2008 6:40pm

pensioners are feeling the worst of inflation as they are living on fixed incomes. They cannot work overtime or increase their income in any way.
The Govt should give a big increase in the pension in the March budjetDRS39C

Posted by Reg Morgan, 13th February 2008 6:40pm

My job involves travelling by car all the time. I am certainly finding my monthly expenditure on fuel is increasing even though I walk whenever possible.

Posted by Tessa Verso, 13th February 2008 6:42pm

Is it not time that we had mass protests and strike to demonstrate our frustration with this insane tax and spend government. It worked for the poll tax but it seems that only the Left are prepared to demand their rights in the UK. Fuel users have ahuge voice if only it were used. Politicians need to know that their next mealticket (vote) is in our hands.

The time has come!

Batjac

Posted by James Gibson, 13th February 2008 6:42pm

Allowing vehicles emitting less than 120g/km of CO2 to enter London free of charge after 27th October will simply increase congestion making a nonesense of the original purpose of the charges. This proves once again that congestion charging was always simply another way of raising money and nothing to do with London and the environement. I'm afraid we're on the recieving end of yet another government scam.

Posted by Mike Wood, 13th February 2008 6:43pm

My fuel bill is up 25% a month. I have had to cut back on my food bill to fund the petrol increase. I object strongly to the future fuel tax increase and wonder where I will have to cut back to fund it. I'm a key worker- a teacher, my pay increase is going to be 2% p.a so along with fuel increases, food price increase and an rpi running at close to 4%. Is it worth it?

Posted by Susan Croft, 13th February 2008 6:44pm

It is ridiculous that the government is even thinking of putting up fuel duty, as they are getting more than enough from the price hike we are currently under. If they can sell it cheaper in Europe and in America then why not here, it is just greed on the part of our politicians because they either get a big gas guzzler car supplied from us the tax payer or they get great big allowances for fuel and to buy the cars and for insurance etc. They definitely make sure their ok but to hell with the people who have to pay their wages and allowances but what they seem to forget is we can all have long memories when it come to the next election and get rid of the so called working man's friend the Labour party but unfortunately there is not another party who is any better.

Posted by Bill Baird, 13th February 2008 6:44pm

It is not the Oil Companies! It is Brown! It is Labour and it's followers that have done this to us!

The next election will certainly have fuel as one of it's pledges!

Posted by Mark Fraser, 13th February 2008 6:45pm

I think its going down the tubes this contry who would of thought it would go to over a £1.00 a gallan or even more i tell you its gong to crash its gread thats what it is dam right greedy for there taxe,s lets face it we will not be able to manage soon,they need to do a U turn now i think I dont no who to vote for this time let alone vote at all,I wont coment on all the free hand outs that thay do and give???.

Posted by Roy Lloyd, 13th February 2008 6:45pm

I remember when it was headline news when fuel went up by 1p per GALLON, the big con began when they started serving fuel up in litres. It won't be long before we're off, I hate this country!!!

Posted by Roy, 13th February 2008 6:45pm

Some long time ago, the emptyheaded - who always seem to run the country - decided that there should be a differential between diesel and unleaded petrol - probably to penalise the economy minded motorist. So they made diesel more expensive, despite the fact it is cheaper to produce than unleaded, is greener with fewer toxins emitted and goes further. As well as cancelling the proposed increase in April, what about levelling the playing field between the two fuels and then (are you listening David Cameron)....cut fuel taxes by 10p minimum. It can be done - you just have to budget more sensibly - instead of like an idiot i.e. Gordon Brown / Ali Darling.

Posted by Michael Ronald Harris, 13th February 2008 6:46pm

Yes i feel the pinch too.

Used to cost me £30 odd to fill up now its more like £50.. thats per week.

Insurance costs a bomb (£1600+) just because im young and get boy racer stamped on my forehead.

I work 9-6 everyday of the week, and all it seems to be for recently is insurance, road tax, and petrol...

Posted by Benny, 13th February 2008 6:46pm

It is so sad the way we are always hit by high taxes in the UK and we all just moan - hence the greedy Government of the day get away with it. The taxation on fuel is far higher in the UK than most EU countries, yet we are supposed to complete with other EU countries. The Government are so extravagant with public funds that they will find it hard to cut taxes, but if they had some vision a cut in taxes could actually generate more tax take. The logic is that people are more likely to pay tax that is fair than try and evade high taxes. Still there is more chance of hell freezing over than anyone with vision in the Government cutting taxes.

Posted by Clive Williams, 13th February 2008 6:48pm


Just logged in while on holiday in the states, filled the tank for $20 (Ten pounds) not looking forward to returning to pay fifty five pounds.

Posted by Alan Wilson, 13th February 2008 6:48pm

i drive a 182 clio sport that should run on super unleaded but today for the first time i put normal unleaded in as the price for super is now £1.10 a litre. its time we did something about this.

Posted by Mick Walker, 13th February 2008 6:50pm

Fuel is just one of Gordon Brown's punitive taxes introduced under his 'Tax and Spend' stealth policies. He must take direct responsibility for the pain consumer inflation because he has mercilessly increased the one tax that is the lifeblood of the nation - fuel tax. Everything we buy is transported using fuel.

Having said that, I saw that the fuel in Scandinavia last week have passed those of UK - even diesel which has an extra jealousy tax in UK (for being more economic despite being so clean these days).

Posted by Rob Kerss, 13th February 2008 6:51pm

Yes, Im a 41 year old married family man and self employed in the construction industry and currently do around 1000 miles per week just to get to work and back this means my costs are drastically increasing, which means of course I will have to put my prices up to compensate, with the fuel prices and influx of foreign workers in this country I am very worried about my future, and am seriously contemplating emigration.

Posted by Carl Orton, 13th February 2008 6:52pm

I AM A 'VOLUNTARY DRIVER ' FOR THE EAST MIDLANDS AMBULANCE TRUST, LINCOLNSHIRE DIVISION, TAKING PEOPLE TO AND FROM HOSPITALS FOR TREATMENT.
I DO UPWARD OF 30.000 MILES PER ANNUM FOR THEM. I GET A MILEAGE ALLOWANCE FROM THE TRUST. FUEL PRICE INCREASES MEANS I AM HAVING TO SERIOUSLY CONSIDER CONTINUING WITH THE SERVICE AS MILEAGE ALLOWANCE HAS NOT INCREASED PRO-RATA TO THESE INCREASES.

Posted by Dennis Elliott, 13th February 2008 6:52pm

Fuel too expensive?? Then every day why do i see people sitting in their cars & vans with the engines running? Why are people still buying cars that do less than 20 mpg? Why are people not demanding cars that do 100 mpg?

Coffee from Starbucks or similar is around £20 a gallon so I would say petrol is under priced.

Oil is the most valuable thing we have and we are just wasting it. A gallon will move your car say 30 miles so think how long it would take you to push your car the same distance. A barrel of oil has about as much energy as 12 people working for a year.

Posted by Tonyw, 13th February 2008 6:54pm

So you think excise duty is too high. How about paying VAT on it as well, taxing a tax eh!
The people of the UK have put up with paying 5% tax every time they cook a meal, or try to keep warm, and 17.5% when they use toilet paper.

The government know we don't have the guts to do anything about it, so just keep whinging.

We get what we deserve.

Posted by David Glen, 13th February 2008 6:56pm

The people who voted Labour are reaping the results of their decision to put these wasters into office.

I have reached retirement age but I am forced to go out to work to pay for Council Tax which is gone through the roof, Electricity and Gas, likewise. Food has gone up far greater than their so called Inflation Index, and now the cost of fuel is about to add another turn of the inflationery screw. Everything delivered to our supermarkets has already been increased in price because of the fuel increases in the last year, and now they will have to increase in price again and we will be the ones paying for it.

The snouts in the trough in Parliament get all their expenses and index linked pensions. I worked for 43 years and am still having to go to work.

Posted by Lynda Crowley, 13th February 2008 7:00pm

Please stop blaming the Oil companies, as every time you do this Goverment laughs all the way to their next pay rise and inflation proof pensions etc.
Its the Gov.thst ripped us all of since May 1997, the new begining, if you voted for them you got it as we got before with them when inflation hit over 27 % Noi petrol No nothing bit better off then then but one has to smile at the good old Labour Clap Trap time and time again and Red Ken? The unemployed and work shy love him and will vote for him again.
Bleed us all dry Ken when you can spend our money on one cab ride to the tune of £280 FACT oh well Fly the red flag with the Blood of the workers.

Posted by Mr.barry, 13th February 2008 7:01pm

If fuel costs are stoking inflation thats another good reason to slash the duty, its obscene and doesnt work anyway. We all got on our bikes and went out for work. I contract to Local Authorities around the country and the fuel costs are making my job unviable. I'd be better off on the dole, than trying to earn a living. Yes its making car manufacturers and others invent/bring on alterantive engines and fuels but what do we the masses do in the mean time. Get into serious financial difficulties thats what. Get in touch with reality Gordon Brown and go out and meet jo public and give us fairer taxes.

Posted by Jeremy Taylor, 13th February 2008 7:03pm

Well there is a surprise The price of fuel is on the increase so then the hauliers will have to increase their charges,naturally,and so up will go prices in the shops !! Well done Gordan !
Now tell me again how come we've all got a Prime Minister that nobody voted for ???

Posted by Gary Wheeler, 13th February 2008 7:03pm

I own a pub and the increases in fuel prices hits the punter everytime. me and a few locals tried to work out how many vehicles are involved in getting a pint to your glass. And we got to about 9! so if you take out how much fuel was a year ago and what it is now then multiply it by 9 thats the total increase on fuel alone to your pint! so do we need another 2p added! i dont think so

Posted by Wayne Towill, 13th February 2008 7:04pm

How comes diesel is now 5p a litre than unleaded?

Its all a big con surely they should be the same?

Its soon not going to worth buying diesel cars.....

Posted by Dave Daintree, 13th February 2008 7:05pm

Fed up with all this being stiffed by the government, as a self employed person I have higher fuel costs, more income tax, increases in all my materials, and I have to keep my prices the same, or I don't get the work! What's more, migrant workers are also driving prices down in the construction industry! Seriously fed up!

Posted by Ken B, 13th February 2008 7:07pm

France as the right idea with there blockades i think the uk should follow there ideas and protests, might bring the goverment back on to planet earth.

Posted by Keith Wootton, 13th February 2008 7:07pm

I blame the idiots who voted Labour in. Did you really expect anything different?

Posted by Roger Scott, 13th February 2008 7:07pm

Try living in a rural area, with no long distance bus services, no inter village bus services, 30+minutes to a mainline station to catch trains which are VERY expensive and often cancelled and crowded, then also be a pensioner who has just had an increase of 3.9% of a low pension anyway.
Then try and run a car to get anywhere, when our fuel expenditure has doubled in 18 months, and then find you have to fill in a tax return because you have a small private pension, and have to pay a high tax on that.

Why can every other country but this sell fuel without the high tax charged here, and when can we vote out these modern thieves who would be in jail if they were not in parliament.

Posted by Terry Dickinson, 13th February 2008 7:09pm

Petrol prices are going up, clothes prices stary the same or are falling. Ther is a simple formula that explains these two facts. When supply outstrips demand, prices fall, when demand outstrips supply, prices rise.

Petrol prices are rising because World demand is rising with newly industrial countries like China and India seeking the sme quality of life as people in UK, Europe and US.

If the whole World cuts its demand (mostly by making industry less dependent on oil, but also by driving smaller cars, using hybrid cars and making public transport a feasible option -- which it is not for many people), that is the only way that oil prices will fall (given that supplies are finite and eventually will run out altogether).

You can ask our government to subsidise petrol prices, but if they do that, where does the money come from to pay the subsidy: health, education, police force? You can ask the oil companies to make a loss, but if they do, they will not bother to sell petrol to the UK any more: why should they?

Posted by Nomad Carowner, 13th February 2008 7:09pm

Every thing is going up i have left my car at home for a little while and walked or got the bus .Its hard to try and save to make a better life for yourself or your family .

Posted by Sandra, 13th February 2008 7:10pm

Diesel is even more expensive, what a temptation to use rebated fuel as supplied to central heating systems, it's the same colour as diesel but it does have chemical markers which can be detected. It's illegal, perhaps that's why Road Fuel Testing Units have been visiting rural communities a lot lately. The government know how to turn the screw, what a Police state we now have, just like dear old Stalin.

Posted by John Bowtell, 13th February 2008 7:11pm

All this moaning and groaning doesn't do any good except make you feel better on the day. When is this country going to stand up together and make our selves heard? This government does not listen to the people, so it's time to make them listen. We need action! Lets do it! TOGETHER we can make it happen.

Posted by Rose Stone, 13th February 2008 7:11pm

Unload a few thousand "Civil servants". the hangers on, absentees, sickies and lead swingers. Bring in a "Won't work, no freeloading" regime and TEST all the supposed invalids to weed out the fraudsters then use the cash to reduce fuel costs, thereby increasing business, thereby improving the lives of everyone through increased emplopyment and higher wages..

Posted by Martin Freye, 13th February 2008 7:11pm

Tesco make huge profits every year as the leading supermarket but still drag us in to spend a min £50 on groceries to get 5p off a litre of petrol. Years ago they would give 3p, 4p etc off depending on your total but now we are forced to spend more! I can't be the only person buying things to make up my total, using the token to fill my tank then returning things i didnt want thanks to their no quibble money back guarantee!! They must know it's going on and realise they are making a loss so why cant they just reduce the price of petrol??? I for one would respect them more and be more inclined to shop there!

Posted by Luan Bridle, 13th February 2008 7:14pm

so again it goes up up and up, they rise the price to line there own pocket, i personally have'nt seen any of the tax money put back into the roads just re-doing pieces of road that are fine and are wasteing money on traffic lights on roundabouts,roundabouts are there to eaze traffic flow if theres lights there they make it a junction. another rubbish idea by the council and goverment, what they also don't see is the fact they raise the price of fuel meaning, businness's need to raise the price but they can't due the fact that with the ever rising immigrants doing jobs for nearly nothing, we can't raise our prices because we need to stay at a competitive level, and everyones running out of ideas, im sorry to have to say that if we want something done we will have to do something to make the goverment change there minds either that or something more i'm not saying it but il put it like this it starts with an R. and rest goes E.V.A.L.U.T.I.O.N, this is meant to be a free country seems to me if your a working class person in this country then you get tax to high heaven while the goverment fat cats count the pennys and think of new ways to shaft the british public

Posted by Weneedjustice, 13th February 2008 7:14pm

While the Oil companies have a vested interest, it is the huge duty that is the main income for the black hole that the gouvernment has with so many civil servants, mostly hangers-on, and other hairbrained schemes. Buy a new economical car? Why? That factory is a massive waste of energy in its own right. My 2.3 diesil truck, with veg oil 50% is more frugal than most other vehicles! 54 miles per diesil gallon plus one gallon of veg oil. That means we have fuel for cars or food to eat. The climate change argument is how the gouvernment has the power control over the people. Based on flawed facts, including "an inconvenient truth" you are being subjected to a massive con that only a lawless outfit can sustain. Get real, we are being taken for a ride in order that the political folk can get their pensions sorted. They will then have sufficient salaries to drive anywhere and throw mud in the faces of the peasants!

Posted by David Drake, 13th February 2008 7:14pm

Oil companies make massive profits every year but still the price of petrol rockets through the roof. The Government won't act because they make money from the price hikes too. We are the biggest mugs in the world in this country, getting crapped on left, right and centre. Revolution anyone?!

Posted by Tony Kavanagh, 13th February 2008 7:15pm

my car is a 1999 pug 406 estate 110 td com rail engine road tax £180 but the same model same engine same C02 in 2001 road tax was £110. I can't put into writing how i feel, thank you gordon!!! y m f

Posted by Michael, 13th February 2008 7:16pm

We all moanning and do nothing!!!!!!!!!!!!!!!!!!!

Posted by Georges Stawski, 13th February 2008 7:16pm

I hear just today the Bank of England , Mervyn King i think his name is said he predicts the inflation will rise for the rest of the year.
Also, I heard more and more Banks and Building societies are initiating people who continue to default payment on mortgages. There is a huge increase in the figure according to the news on BBC Radio 4 this morning.
Which also means people will struggle to pay for fuel and other essential costs in their day to day expenses.

Posted by Anish Patel, 13th February 2008 7:18pm

Good point made by Darren about bio-diesel, but there ar far too few retail outlets. I live in Hertfordshire which has none. The drive to the nearest in North London would out-weigh any savings made.
I think that it's O.K. for Ken to charge extra for gas guzzlers, but where is the cheap public transport? Public transport in the UK is far too expensive possibly due in part to high fuel charges.
Cutting duty on diesel would help both it an us diesel drivers too. As an example if I catch the bus into town (St.Albans) from home it costs me £4 for the round trip. I can drive for 50p worth of fuel + £2.50 for 3 hours parking and it's more convenient.

Posted by Richard Young, 13th February 2008 7:18pm

I have been a voluntary driver for cancer patients for the past 22 yrs which I have to say have had great pleasure in doing. we are covered with milage allowance which is 37p a mile.. Sadly I have had to tell them that i cannot continue as the fuel prices are far to hight.. Our group transports over 180 patients a week. These poor patients will be forced onto ambulance transport which doubles there time away from home and also very uncomfortable for them.

Posted by Yvonne Morrison, 13th February 2008 7:19pm

Brings our lads and lasses home from Iraq and Afghanistan and use the billions to reduce fuel duties, which in turn will reduce inflation and boost the economy. Tell Bush to fight his own wars!

Roger Scott do you really think the tories under Camreron will be any improvememt dream on Cameron has loads of new green taxes ready to go and has already said he has no plans to reduce tax except to his backers the super rich.

For those who are too young to remember the last time the tories came to power under Thatcher the first thing she did was to raise VAT from 7.5% to 15% the second was to create 4 million unemployed, the third was to abolish wages councils these guys set minimum rates for the very low paid. People in low paid jobs like shop staff actually had pay cut if they did not like it they were told to leave.

So take care and be suspicious of all politicians. Its only after they get in that you find out what they really intend to do.

Posted by Chrisduthie, 13th February 2008 7:19pm

The rising cost of fuel is certainly of major concern. The Chancellor's unceasing efforts to ratchet up the cost of petrol and diesel by raising duty at every opportunity (under the guise of protecting the environment) is partly to blame but the oil companies have not been slow to exploit the rising cost of crude oil to boost their massive profits. We are always given to understand that oil is priced in US$ but when the pound was riding high against the greenback (over US$2 to the £1 at one stage) did anyone notice petrol prices go down? Of course not. The whole thing is a massive confidence trick which the gullible British consumers fall for time and time again. We are not called "rip-off" Britain for no reason. If it costs US$1 in the USA, it costs £1 here and Euro1 in the rest of Europe. The oil companies control budgets in excess of many world nations and have the benefit of controlling every aspect of the production chain form exploration, drilling, extraction, shipping by tanker, refining, distribution and final price on the forecourt. They are able to take their profit at any or all of these stages and still manage to show a very small margin at the pumps.

Posted by John Prescott, 13th February 2008 7:19pm

i thing it,s about time we said drop the fuel tax ,give us a break the gov must be makeing a mint out of us

Posted by Maurice Darnell, 13th February 2008 7:19pm

Yes we are feeling the pinch there should be another strike i think. we are being charged more per litre of petrol and the garages around are watering the petrol down in sudbury suffolk. so we only get half a tank of petrol instead of a whole tank. i think it is disgusting!!!!

Posted by Julie Wood, 13th February 2008 7:19pm

This comment has been removed as it was found to be in breach of our Blog Policies.

Why do petrol prices vary so much across the country? You pay more in West Wales yet your only a few miles from the Refinery and land is cheap. Its got to be profiterring from the oil companies. Supermarkets shopuld be the same price in every town across the UK.

Posted by Michael Saunders, 13th February 2008 7:21pm

i can remeber diesel use to be 5 pence cheaper then patrol and now its 5 pence dearer what going on and diesel is cheaper to make than patrol

Posted by Carl Jones, 13th February 2008 7:21pm

My wife and I certainly feel the efect of inflation. We have changed our car to a smaller and more economical one 8 years old! And our 1990 camper van runs on LPG which is now more than 1/2 the price of unleaded. This is gradually eroding the advantage of LPG especially when mpg is considered.
As teachers, being offered a pay rise of just over 2% inflation at over 4% has an immediate effect.

Posted by Christopher Smith, 13th February 2008 7:21pm

My modest naval pension is being rapidly erroded by council tax increases and petrol price increases. As I live in the country, this makes life very difficult.

Posted by Commander Patrick Bryans, 13th February 2008 7:22pm
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