Brendan McLaughlin co-founder of PetrolPrices.com has been in touch to advise us of some looming misery at the pumps.
In just 2 weeks fuel duty will rise again, bringing the total tax paid at the pumps to 71 pence in every pound - despite Prime Minister Gordon Brown promising not to raise fuel duty.
Fuel duty is set to rise by roughly 2 pence per litre on April 1st meaning that 66 pence of the average litre of fuel goes directly to the Treasury.
Fuel tax goes into a central government tax pot. It's not necessarily allocated back out to motoring, so fuel tax can be spent on anything – the NHS, housing, pensions or even banking bailouts.
At the height of soaring pump prices Brown made a promise during Prime Minister's Questions on July 16th 2008 not to raise fuel duty for a year.
He stated: "In recognition of the problem people face with petrol, we are freezing duty on petrol for the full year."
Brown broke this promise in December 2008 when he added 2 pence per litre to fuel duty to offset the reduction of VAT to 15% - a move which angered UK hauliers who are able to claim fuel VAT back, but not fuel duty.
He is set to break the promise for a second time on April 1st when fuel duty on unleaded and diesel will rise 1.84 pence per litre. Including the additional 15% VAT on top this will make the rise at the pumps around 2 pence per litre.
The Treasury have said that the only time further changes to fuel duty can take place are at the next Budget – which has been postponed from March until April 22nd, after the duty rise comes in.
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Chris
Bob Hume
39p in the pound will be going back to the retailer - it stands to reason that in order to increase their meagre mark-up, that the gross price at the pumps will need to increase disproportionately to the levy increase.
This market is so sensitive, demand-driven and unpredictable that anything could happen after that. The elasticity of the petrol/diesel market is its only saving grace - customers will always head to the cheapest outlet - the product is more-or-less consistent in quality so those outlets that continue to overprice their fuel need to reduce pricing to stay in the game.
It doesn't help that we've got Gordon Brown telling the oil companies to be very careful about their pricing during the predicted uncertain future a couple of months ago, then whacking another 2 percent on the fuel levy.
When are people going to realise that he's wrecking the economy on purpose? He must be mustn't he? He's trying to model himself on a James Bond arch-villain or something.
Captain_Grumpy
pwrmotorsport
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