Prices rise at the pumps!

1st September 2009
We all knew the fuel duty increase was coming, if you passed a petrol station yesterday you would have seen the crowds of motorists filling their tanks before the 2p hike kicked in. Well, that is actually 2.3 pence once you whack the VAT on top! This now brings the average cost of a litre of diesel to 107.9 pence and it's not going to stop there if the price of oil continues in it's sky high direction.

So why do we pay so much at the petrol pumps? OK, oil prices have made a turn upwards but the main reason is TAX. The actual product "Petrol" or "Diesel" is only about 25% of the cost. 8% is taken by the retailer and delivery firms but the rest goes to the government via "Duty" and VAT.

So my question would be, how is that money spent? After the massive MP expenses scandal does anyone have faith that out tax pound is properly managed?
4 Responses to "Prices rise at the pumps!"
I don't do much driving but even I have noticed the dent in my finances due to the high cost of fuel. People who drive for a living must find it a real struggle and what about the haulage firms? These "fuel duty" increases must cut their profit margins, the last thing we need in a recession! Nice one Alistair Darling!
Aria D
Aria D
Of course the money is not managed properly, this government have got themselves in such a financial mess they are desperately grabbing every penny to plug holes across the board!
This is insane. The cost of a barrel of oil is half what it was when we had the last fuel hike but for some reason people aren't concerned by it now. I remember the truckers being up in arms about this - where are they now?
How long can we take this increase in price for - it's getting completely out of hand!!!
Matt, people are concern but what can they really do?? Protests have little or no effect on the price of fuel. Did the last truck blockages make the government reduce the duty on fuel? Ain't no way they gonna reduce fuel duty in a recession!!
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