Wednesday, July 02, 2008

Putting It In Perspective

Just a quick post for my American readers.

At the pump, meanwhile, U.S. gas prices continued to climb, reaching a national average of $4.086 a gallon, according to a survey of stations by AAA, the Oil Price Information Service and Wright Express.

Diesel fuel in the UK is now up to $12 a gallon. Petrol is not far behind. From The Sun in May-

Our diesel costs 48.8p a litre before tax and duty are added. But at the pump, with 58 per cent tax added, it averages 116.6p.

As the Mail notes that price is now around 131.8p a litre. A pretty drastic rise in a little over a month.

The irony is that, before tax, we actually have some of the cheapest fuel in Europe. And despite the effect of the fuel price rise on citizens Labour are planning not only to increase fuel tax again this summer but they're also increasing the cost of taxing your car.


FrauBudgie said...

The price of gas here across the pond makes me dizzy ... thinking of what YOU pay make me want to pass out!!!

I've also noticed that in the efforts to reduce the price of gas here in the US, none of our politico's have offered to reduce ANY gas taxes ...

Thanks for posting ...

Jay.Mac said...

Good to hear from you again!

I caught some figures on the breakdown of what happens to our money when we buy fuel in the UK. It worked out that the people who prospect for, drill and refine the oil get about 24p out of every pound. The government, which does nothing, takes a whopping 71p! The supplier and retailer take only a few pence between them.

The government originally taxed fuel and cars to pay for our roads infrastructure but they long ago stopped using the money for just that- and it became another way to take earnings from people and put it in their coffers. And even now, as world oil prices are affecting not only how much it costs to fill our cars but increasing the price of everything we consume, they are hoping to add more tax.

Never mind that they are already collecting more tax off the increased crude price because of the VAT we pay at the pump anyway. They want more and more- and no matter how much they spend, none of the gov services (like the NHS) get any better. If anything, with each year things seem to grow worse and worse...

Not to mention that the cost of home heating oil has more than doubled in the past three years. Back in 2005 500 litres was around the £150 mark. It's now around £320.

These days everyone I speak to is complaining about the cost of living here.

DirtCrashr said...

The government should get nothing. The produce nothing you can eat or drink, they contribute little of quality or value - it's just a hairy amoeba that needs some weedspray.