Now we’re at the 130+pence per litre price for petrol. When you go to the pumps, the cash now whizzes around the meter far faster than the amount of petrol being dispensed. These are worrying times for us all no doubt as the cost of living keeps rising whilst pay rises are not keeping in line with inflation. The whole economy is struggling.
However, the simple fact remains that whilst the government keeps talking about how the price per barrel is rising due to the issues of instability in the middle east, rest assured that the true reason that petrol and diesel is so damn expensive in the UK is down to the government. That’s our government, not leaders in states far away from the UK that have the oil reserves.
I’ve written before about the fact that most of the cost of fuel is duty and tax. In fact, it’s around 66% of the cost. The government in the past didn’t justify this. It simply was. However, the new ‘green’ agenda means that supposed PR gurus on the payroll simply have to state that by having the price so high, it puts people off driving and thus lowers the amount of CO2 put into the environment.
For me, this smacks of hypocracy. If those in power were so interested in this as a true ‘green’ mandate, then the duty and tax from fuel could be used for environmentally friendly alternatives or increasing funding for scientists to produce a more efficient internal combustion engine.
Do you think this is a fair justification? Should the price be so high? Would you prefer the carrot rather than the stick?
As a side note, I heard that the current census is going to cost £500 million in total, when people are losing their jobs and the country is still stuttering on. Maybe some of that money could have gone to a slight tax relief on fuel for the next couple of months? Just a thought…
On the way home last night I spotted that diesel has jumped up another couple of pence to 139.9p per litre – the £7 gallon is rapidly approaching.
To use the green argument as justification for the current level of fuel taxation is the purest form of verbal sh1te. It is nothing to do with green initiatives and everything to do with supporting the rest of our ailing economy.
Apparently fuel sales are down roughly 10% on the same time last year, so don’t expect to see a drop in fuel duty in a hurry – the government will be keen to keep it high to protect their revenue.
One interesting statistic – for every increase of $1 in the price of a barrel of oil, the government receives an additional $450 million a year in tax from fuel sales. Do you think they really want cheaper fuel?