Budget - Fuel Duty

[iCraig]

Hi All,

Can someone answer something for me re the fuel duty cut? As I understand its been cut by 1p per litre, so does that mean that the VAT on that 1p will also come off?

I've tried to work it out by taking 20% off the price say £1.379 then take the 1p off, so leaves it at £1.0932 plus the 20% back on take us to £1.31184?

I am probably working that out wrong, as it can't be right?

[angryjonny]

1.367 I make it.

To take the VAT of a price, it's

Price / (6/5)

...because VAT is 20% of the pre-VAT amount, not the post VAT amount.

(PS - same as taking 1.2p off the price.)
(PPS - don't expect garages to pass on the full 1.2p)

[Phoenix]

Angryjonny is correct, the final price with VAT is 120% of the original price of fuel and duty.

As you're taking off 1p plus it's vat at 20% that's 1.2p off. It's still comical that you pay VAT on fuel tax, tax the tax.

[chris-red]

As I understand they aren't cutting the duty by 1p they are just not increasing it by 1p.


Fuel Duty usually goes up by inflation +1p per year. This year it will just go up by inflation.

Nothing to get excited by.
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[chris-red]

Ignore me, that is old news.


The escalator which I was referring to has been scraps AND the fuel duty is being cut.

When I read about it they hadn't announced the cuts.
____________________
Well, you know what they say. If you want to save the world, you have to push a few old ladies down the stairs.
Skudd:- Perhaps she just thinks you are a window licker and is being nice just in case she becomes another Jill Dando.
WANTED:- Fujinon (Fuji) M42 (Screw on) lenses, let me know if you have anything.

[Paulington]

Who gives a flying crap? They're still arse-raping us with massive fuel duties, totally looking forward to the 4p increase in January.

.
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[Hetzer]

Wow, one penny. That's going to make a difference. The way the BBC presenters are gushing over it you'd think they were scrapping duty all together.

These retards live on a different planet to real people.
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[AL-]

[dogbot]

Does anybody really think the price of fuel will ever fall again?

[Kickstart]

[pinkyfloyd]

[Kickstart]

Hi

Prices have gone up 30%+ but only a tiny bit of that is an increase in tax. I have no doubt that should oil prices drop then the tax increase will come back in again, but even to account for half of that increase in fuel prices duty would have to increase by around 20%.

All the best

Keith
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[pinkyfloyd]

Kickstart sir, I really do hope your right and hope I am proved wrong. But the budget hit the people it was intended to hit as it does every time the Tories get into power. The working class get little sweetners and then backhanded and arse raped.
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illuminateTHEmind wrote: I am just more evolved than most of you guys... this allows me to pick of things quickly which would have normally taken the common man years to master
Hockeystorm65:.well there are childish arguments...there are very childish arguments.....there are really stupid childish arguments and now there are......Pinkfloyd arguments!
Teflon-Mike:I think I agree with just about all Pinky has said.

[MarJay]

[Redoko]

Gonna stack up on 100 barrels of petrol if it hits £1.
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[pinkyfloyd]

[Kickstart]

[Kickstart]

[quote="pinkyfloyd"
I'm waiting for the "should buy a house then" and then reply with the fact that my job never paid me enough to get a mortgage without a sizable deposit. I couldnt get a sizable deposit because the rent from my private house took most of my earnings and the rest was taken up with the cost of living. I couldnt get a council flat to ease the burden because the Tories sold them all last time they were in power.[/quote]

Quite possibly true. Trouble is to a large extent it is measures to help those less well off (such as min wage and housing benefit) and extra taxes against those not so badly off (such as pension fund taxes) that have helped push house prices up by making buying them to rent out an attractive proposition.

All the best

Keith
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[dogbot]

[Kickstart]

[pinkyfloyd]

Kickstart, I was earning around 15K a year as head chef of a restaurant in Bath. I was paying £400 a month rent and the cost of living in Bath was second only to London. I enquired about housing benifit for low wage and I was refused. I also enquired about a mortgage and even with a 20K deposit the bank wanted me to get I still would only have received around 3.5 times my annual wage.

3.5 X 15K = 52.5K + 20K deposit = 72.5K

Cheapest 1 bedroom flat in bath at the time was over 100k.

Couldnt get a social house as "we were adequatly housed and could be waiting years."

There isnt a government that actually makes it possible on a low income to get onto the property ladder and with the serious shortage of council houses due to the "right to buy" introduced by Maggie in the 80's many people are stuck privately renting.

Another point to take into consideration is the government dont actually want the working class on low wages to be anywhere else but below their feet. Try and better yourself by saving for a mortgage, say the needed 20K minimum. Council get wind that you have anything more than 6K savings and they stop any benifit you were entitled too.

Anyways thats off topic. Back on topic I think if the price of oil falls the government wont pass on that saving to us penny for penny if at all.

A 20% fall in oil prices will probably mean a 5% cut in price at the pump and an extra 15% to the government.
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illuminateTHEmind wrote: I am just more evolved than most of you guys... this allows me to pick of things quickly which would have normally taken the common man years to master
Hockeystorm65:.well there are childish arguments...there are very childish arguments.....there are really stupid childish arguments and now there are......Pinkfloyd arguments!
Teflon-Mike:I think I agree with just about all Pinky has said.

[Kickstart]

Hi

I agree with yours maths, just see that anything done to sort it out would just ramp up prices and do no good at all.

As to deposits, than is an issue now. Not that long ago far smaller deposits were the norm. Which would have helped you buy a house but is one reason why house prices ramped up and you can no longer afford one. Right to buy might have lead to less cheap subsidised housing, but also realeased a load of cheap housing to buy. Which do you want, the cheap house to buy or the cheap house to rent? The 2 seem mutually exclusive. Similarly for benefit, you say if you save then it hits your benefits. Add benefits and you just push up prices, while at the same time pushing up the tax take needed to support those benefits. Nobody gains except those who already have a house they can sell to get the money from it.

You might want a load of subsidised social housing, but that needs to be paid for which means more tax. Are you happy to pay more tax for it?

What we probably need long term is a large property price crash. But that would really hurt all those who have managed to scrape up enough to buy a house. Has happened in the past (my first hours lost about 1/3 of its value within 2 years of me buying it).

If oil prices went back down to their recent low point they would have gone down 60%. Even with the canceled rise in fuel duty added as well that would still mean something around a 25% drop in pump prices. The rise in prices isn't really down to tax at the moment, it is down to oil prices. But if you a major oil producing country would you ramp up production to cut prices when governments are happily adding well over 100% tax?

All the best

Keith
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[Kickstart]

Hi

Major one is Saudi and we are busy supporting them and selling them weapons.

All the best

Keith
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[Kickstart]

Hi

Yes, oil has gone up a lot. From memory when I was working in Belgium (1998/9) it was around $15~$20 a barrel. Now it is $110~$120 a barrel (having been about $40 a barrel a couple of years ago and $140 a barrel shortly before that). Tax has gone up as well, but most of the tax is fuel duty which is an absolute amount rather than a percentage of the price.

Cheapest prices I can remember were about 70p a gallon in the late 1970s. When I first got a bike it was around 40p a litre (which would make it about 86p a litre if it had increased in price by rpi since then).

All the best

Keith
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