The Mudcat Café TM
Thread #113005 Message #2397473
Posted By: Paul Burke
25-Jul-08 - 06:55 AM
Thread Name: BS: Who is responsible for gas prices?
Subject: RE: BS: Who is responsible for gas prices?
the problem is that if governments tax petrol on a percentage basis
Only the VAT element is taxed pro-rata. The fuel duty is fixed, currently at 50.35p/l. In fact taxes on fuel are a lower percentage than at any time in the last 10 years at least.
The local supermarket's current price (unleaded) of 115.9p/l works out as:
17.26p VAT 50.35p duty 48.3p fuel
Or about 58.3% tax. The 2p rise in duty would translate at current fuel prices into a 2.4p rise at the pumps.
In real terms, petrol is about 24% more expensive in real terms than in 1983 , having been cheaper for much of the time, and having risen nearly 30% in the last few months- see the link for the rise since March. Total taxes have been over 50% most years since 1952 (pdf).
The fuel protestors are protesting to the wrong people- it is world oil prices, driven by economic growth in China and India, by speculation, and by the increasing cost of extracting oil, that has caused the price rises.