Petrol prices in the UK could reach £1.20 per litre within the next few weeks
17 March 2010

Petrol prices in the UK are set to reach a record high of £1.20 per litre within the next few weeks, according to the AA.

The previous high was 119.7p in July 2008, following huge rises in the price of crude oil. The AA is putting the latest rise in petrol prices down to an increase in the wholesale cost of petrol.

The AA has now called on the government to delay the introduction of a further 3p increase on a litre of petrol. This tax is due to come into effect on 1 April.

“We all know government finances are in dire straits but a 3p rise in fuel duty is not good for the economy and could fuel inflation,” the AA’s president Edmund King told the BBC.

The AA said that families in the UK were now paying an extra £52 per month for petrol.

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7

17 March 2010

i feel sorry for the AA because they always advise the government what to do about motoring, and do the bigwigs listen?

Computer ses no

17 March 2010

£1.20 would be good. Super unleaded has been at £1.25 around these parts for weeks. Lack of competition is one of the causes, and this Government is too weak to stop the cartels.

17 March 2010

From my experience the AA provide an excellent breakdown service, insurance service and maps. They no doubt are also a very good driving school, judging by the number of their cars that you see. But when it comes to standing up for motorists interests they are a complete waste of space. Asking for a delay in putting up fuel tax is pathetic, they should be demading its reduction, it is already just about the highest in Europe. Autocar should take the lead in ignoring its miserable bleatings and instead reporting the views of organisations like the Association of British Drivers who really do try to stand up for our interests. As in all political matters, a compromise will eventually result, but the case for reducing fuel tax must not go by default.

17 March 2010

[quote Autocar]The AA is putting the latest rise in petrol prices down to an increase in the wholesale cost of petrol.
[/quote]

good old AA, part of the mushroom policy - keep them in the dark and feed them BS - of the powers that be. Demand for petrol has fallen since the start of the Great Recession in 2008 and still hasn't recovered, indeed is still falling in US and Europe, yet the price of crude more than doubled in the last year. Why? Money printing - devaluing dollars and pounds and effective free money given to the big banks, who then lent it to hedge funders, who speculated on commodities. Plus, the pound through QE policy - money printing - of the BoE has caused a slide in the value of the pound, raising the imported cost of oil. So no demand and supply cause/effect with oil price, rather debasement of the currency being used to buy it - deliberately, in order to bail out criminal(see latest Lehmans collapse report on Ernst&Young and Linklaters), bust bankers and associates and vermin property speculators.

[quote Autocar]but a 3p rise in fuel duty is not good for the economy and could fuel inflation,” the AA’s president Edmund King told the BBC.[/quote]

could fuel inflation? come, come Mr King, you know that's rubbish. UK has the highest consumer price inflation in Europe already at 3.5%(Jan), with the eurozone average figure at 0.9%. Hiking fuel prices 15-20% in the space of three months or so will send official iinflation, CPI, to over 5% and real inflation to 1970s type 20-30% levels for ordinary people buying mainly food and fuel staples. That's a recipe for societal breakdown, as anyone outside of the protected public sector is experiencing real wage cuts or job loss and will not be able to live with hyperinflation in the cost of food, energy - gas and electricity - and transport.

[quote Autocar]

The AA said that families in the UK were now paying an extra £52 per month for petrol.

[/quote]

£300 a year is equivalent to around a 2p increase in income tax for a family with average earnings. If Labour or conservatives proposed increasing the basic rate of income tax by tuppence there'd be uproar, as most people can comprehend this in reduced pay packets. But stick the equivalent on fuel, where 80% of the cost is tax, and the sheep baa on. Fuel tax is regressive, as it's a flat rate tax, affecting the poorest disproportionately. VAT is proportionate but affects the poorest and average earners more than high earners, where an extra £50 a week motoring cost can be borne. This policy of raising taxes and revenues on the backs of those who can least afford it is morally reprehensible.

17 March 2010

[quote nicksheele]an extra £50 a week motoring cost can be borne.[/quote]

apology: where £50 motoring fuel costs a week can be borne, i.e., a two-car family doing around 300 miles a week combined, consuming around 40 litres of petrol/diesel at a cost of around £50.

17 March 2010

What is frustrating is that before Tax we actually have the cheapest fuel in Europe, and I guess the oil companies have done this as their guesture to help us out. Around the EU the wholesale price of fuel is around 3-5p per litre higher, but our rip off government apply fuel duty (even higher for diesel) and then VAT is applied on top so we pay a tax on tax.

If this huge amout of tax benefitted motorists or commuters by repairing our pot hole ridden roads, or ensuring road works were done in half the time, or maybe invested into our rail network so there was a credible alternative, then maybe we all wouldn't get so upset about being ripped off. But this current government take the money and deliver nothing. Taxation should be related to the budget associated with the issue, therfore car tax and fuel duty should benefit transport only.

Problem is we have a government that has perfected stealth taxation, and whilst I couldn't give a damn about how much tax is on cigarettes and booze, fuel duty affects every body as this has a knock on effect to every item of produce that has to be delivered to either a shop or via post, even simple things like school trips or meals on wheels for the elderley go up in price, we all suffer in one way or another.

17 March 2010

Nicksheele summed up everything I was going to say pretty decently. Can't really add to it, but wanted to make it clear that I agreed!

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