2p on a Litre of Fuel

[dudi]

But it's not 2p on petrol yet. The price of petrol should remain the same because the 2p duty cancels out the decrease in VAT. In 13 months time VAT will return to 17.5% but the 2p duty will also stay. 13 months seems like a reasonable notice period.

Quite right tim. there should be next to no change right now in the price of petrol due to the change in duty as the VAT slash will cancel it out. this will of course go up again in 2010. and a 2p increase in fuel in 12 months is no worse than any other budget gone before us.

It makes me wonder why there's not an outrage when a loaf of bread increases in price by 2p. basic food stuffs are the real essentials, those things we HAVE to consume. petrol is classed as a luxury good, hence the VAT on it. people (including me) have become reliant on it so much that it is now regarded as a necessity. perhaps it is, and perhaps it should be classed as an essential, like baked beans, and have no VAT on it.
(So should bike chains, as i need a new one)

I am not looking forward to the eventual increase in petrol price. for me it will cost an extra 90p a month.

lets hope they don't put the price of porridge oats up too!

 

[John Ponting]

As I own 3 bikes I normally want to dive in and castigate motorists on any possible subject.

Because I have a motorbike and a sportscar I normally want to dive in and berate RLJers.

However, as a fairly representative member of this forum I try to be a bit open minded.

BUT I agree with Dudi (I think, could be PrettyboyTim). Thirteen months advance notice of a tax rise leading to an increase in the price of fuel is fine with me. After all, we all 'know' that by 2010 we will ALL be paying more for everything we choose to spend our money on - even the essentials like food, heating and housing.

However I do tend to object to retrospective taxation. Six years ago I chose a car with reduced emmissions (could have gone lower, could have carried more people). I expected the taxation to increase over time. I did not expect to have the bands changed as well as the rates. OK I KNOW I AM A BIT NAIEVE. So I support the future tax on fuels and I applaud the (temporary) rethink on taxation bands.

Many on here will not agree and will attack my views. That's their choice.