What can be done to fuel tax/duty?

Honest John Back Room » Motoring discussion
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Sun 4 May 2008 12:17
What can be done to fuel tax/duty? - Optimist
In this morning's Telegraph there's a brief analysis of what El Gordo can do to put things right since receiving a good kick up the sporran the other night.

On fuel costs, the plan is apparently to try to force OPEC to increase production. Lowering fuel duty is dismissed on the basis that the reduction might not be passed on at the pump.

They just don't stop do they? The hole gets deeper because they keep digging.

I could be wrong, but if the duty is reduced, the supermarket chains will pass on the reduction at the pump and the majors will be forced to follow suit.

And if OPEC won't increase production (and that seems to be the current wisdom) then they can say they tried, can't they.

Anyone got any other thoughts as to how tax or duty could be reduced to the immediate benefit of the punter?

Subject header changed to better reflect the question... and this thread is sailing dangerously close to politics rather than motoring - you have been warned! :) PG

Edited by PoloGirl on 04/05/2008 at 12:36

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Sun 4 May 2008 12:57
What can be done to fuel tax/duty? - cjehuk
Well really there is an easy win for the government here that won't be taken yet it would allow them to save face while helping the electorate.

At present the "average" 110.9p/l of fuel has a break down of:

16.51p VAT
50.35p Fuel Duty
leaving 44.04p that is the fuel cost and profit

At present duty is applied to the fuel then VAT on top of both duty and fuel costs.

If they were to maintain fuel duty at the current level, but apply VAT after the fuel cost but before the consumer purchases then the breakdown would be:

50.35p Fuel Duty
44.04p Fuel Cost/Profit
7.71p VAT

Total = 102.1p/litre.

The other thing of course is that in the UK fuel prices have a tendency to only go up - if you watch the prices at American filling stations they go up and down much more often as a result of the oil price fluctuations.
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Sun 4 May 2008 13:05
What can be done to fuel tax/duty? - Optimist
Stap me vitals, Polo Girl! Every time you turn the ignition key you hand over cash by way of one form of tax or another. You can't divorce motoring from politics that easily.

I did see HJ's post on another thread but, all due respect to the man himself, his responses on a Saturday in the paper are spiced with political comment. And none the worse for that!
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Mon 5 May 2008 21:36
What can be done to fuel tax/duty? - Ubi
Andrew Marr's interview of Gordon Brown yesterday was, in a way, revealing on this subject. Brown elaborately avoided the question put to him about fuel costs.

They may again "postpone" the increasingly insignificant £.02/litre duty rise which has been bouncing around for some time now, as a sop. But I think we may safely conclude that the prospect of the government offering a meaningful reduction in fuel duties for private motorists is vanishingly small. Big ticket item.
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Mon 5 May 2008 21:47
What can be done to fuel tax/duty? - smokescreen
I sincerely doubt Gordon Brown has the abililty to put pressure on OPEC regarding production given his poor inter-communication skills that even has some of his party members screaming for the return of Tony Blair...!
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Mon 5 May 2008 21:53
What can be done to fuel tax/duty? - madf
The Government could cut back on its spending.


Pigs are on runway, taking off, flying past window.


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