The BBC has managed to run pieces on petrol and diesel prices now going above ??1 a litre ( ??4.56 a gallon, $9.56 a gallon) and has even mentioned that there has been a recent hike in the fuel duty, but still they blame oil markets and not the government.
When will they tell their audience the truth, that two thirds of the price is tax and the main reason we pay such high prices for fuel is the rip off government?
November 9, 2007
Exactly…, about 75% tax compared to the US who only pay 15% on their petrol. What will they tax if we start using electric cars?
The bbc should tell us the truth about matters such as oil prices but then they risk annoying the government who might mysteriously abolish the tv licensing raquet. Bottem line, The BBC are political puppets mitigating the full extent of rip off taxes.
November 9, 2007
Oil at 100$ per barrel is just 31 pence per litre.
Given all the refining and distributions costs say retail at 37 pence per litre,
G.Bown takes the rest. I.e. makes 65pence per litre just on petrol and diesel) For the oil producers they make only 25p/litre
Who is taking the *****
November 9, 2007
The BBC work for the Labour governemnt – a given .
Why doesn’t the Conservative party suggest that it be manadatory that all petrol/fuel bills show the tax element of the price – clearly.
November 9, 2007
Much as I agree with an earlier poster’s opinions about Auntie Pravda, isn’t it pretty much understood by everyone that most of the cost of petrol and diesel is tax – especially since the issue received so much publicity during the fuel blockade of a few years ago.
Fuel tax is a significant expenditure for the average motorist doing twelve or fifteen thousand miles a year. Let’s face it, 15k miles at 35mpg would require about 430 gallons costing today around
November 9, 2007
Am I supposed to be sympathetic to oil company profits and their tax treatment. BBC? Red herfing John!
Reply: No I do not expect you to be "sympathetic" to oil company profits. I merely wish to get across how much bigger the government's tax take is than the shareholders' profits take. It is also important when reporting the high petrol price story for journalists to remind people that two thirds of the price is UK tax, and that tax was increased in October by the Chancellor at a time when oil prices – therefore the tax take from petrol – was rising anyway.
November 10, 2007
John! Why not show the oil companies take per bill as well? In some form or another? Corperation tax in this country is low.
Reply: If the bill showed the government's huge tax take, then the remainder would be the money taken by the oil company, so you would see both. You can see the oil companies profits each quarter when they publish their results.They are large sums becuase they are large companies deploying huge sums of capital, but they are small compared to the government's tax take.