interestrateripoff Posted November 5, 2014 Share Posted November 5, 2014 Oil price fall raises spectre of increased petrol duty George Osborne could resurrect the dreaded fuel duty escalator if Brent crude prices fall below the $75 per barrel threshold We can't have falling prices, the govt should simply replace any fall in price with tax. They could call it the In the National Interest for constant inflation deflation tax. Quote Link to comment Share on other sites More sharing options...
billybong Posted November 5, 2014 Share Posted November 5, 2014 For goodness sake somehow they must stop those awful price reductions Quote Link to comment Share on other sites More sharing options...
Giraffe Posted November 5, 2014 Share Posted November 5, 2014 If we get general deflation we will be in the twilight zone that's for sure. You could have businesses making a loss each year yet carrying on quite merrily and paying no tax. Like someone once said 'you can't tax deflation'. Which is why, when the time comes, everything including the kitchen sink will be thrown at it. Quote Link to comment Share on other sites More sharing options...
Lifes a game Posted November 5, 2014 Share Posted November 5, 2014 We need a nice dose of deflation to reward the savers! Quote Link to comment Share on other sites More sharing options...
chronyx Posted November 5, 2014 Share Posted November 5, 2014 Shame there's only one thing I want to buy with my savings, and it won't be deflating in price any time soon. Quote Link to comment Share on other sites More sharing options...
onlyme2 Posted November 5, 2014 Share Posted November 5, 2014 What $75 dollar per barrel threshold? Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted November 5, 2014 Share Posted November 5, 2014 The fuel duty stabiliser introduced by Osborne in 2011 defers tax rises while the price is high on the understanding they are added on when the price is low, in this case below $75: http://www.telegraph.co.uk/finance/budget/8402423/Duty-cut-as-Chancellor-unveils-fair-fuel-stabiliser.html Says something that a UK chancellor would use a price in a non-local currency btw. The spending-receipts gap is £300/month/household. Osborne has no intention of reducing spending so taxing the crap out of people with hard to avoid ones like fuel duty is bound to be on the cards. Quote Link to comment Share on other sites More sharing options...
onlyme2 Posted November 5, 2014 Share Posted November 5, 2014 The fuel duty stabiliser introduced by Osborne in 2011 defers tax rises while the price is high on the understanding they are added on when the price is low, in this case below $75: http://www.telegraph.co.uk/finance/budget/8402423/Duty-cut-as-Chancellor-unveils-fair-fuel-stabiliser.html Says something that a UK chancellor would use a price in a non-local currency btw. The spending-receipts gap is £300/month/household. Osborne has no intention of reducing spending so taxing the crap out of people with hard to avoid ones like fuel duty is bound to be on the cards. Aha, thanks. Well escalators go down as well as up maybe he'll match the level of reported deflation which we keep on being told we are suffering now. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted November 5, 2014 Share Posted November 5, 2014 Aha, thanks. Well escalators go down as well as up maybe he'll match the level of reported deflation which we keep on being told we are suffering now. Seems likely he's got 10p/litre to play with now, using the politician's favourite habit of defining previous peaks as some sort of new base level. I remember thinking 125p/litre was nuggets the first time it appeared back in '08, having paid under 90p/litre very shortly before. Now 122p/litre or whatever I paid recently seems cheap. Reckon Osborne will be happy to keep it at 130p/litre or so as he knows most folks just have to suck it up or he gets the VAT if they decide to buy a replacement. Would love to go eleccy for wife's commute but not quite there yet on the cost front imo. Quote Link to comment Share on other sites More sharing options...
Corruption Posted November 5, 2014 Share Posted November 5, 2014 (edited) The spendalot chancellor needs more tax being as he won't cut spending. There'll be a lot more taxation coming not long after May 2015. Edited November 5, 2014 by Corruption Quote Link to comment Share on other sites More sharing options...
OurDayWillCome Posted November 5, 2014 Share Posted November 5, 2014 Crude is at least 25% cheaper than a year ago. The dollar is exactly the same. Petrol in my area has dropped 5%. The price of oil seems to have little to do with the price petrol. Quote Link to comment Share on other sites More sharing options...
andygivenup Posted November 5, 2014 Share Posted November 5, 2014 If we get general deflation we will be in the twilight zone that's for sure. You could have businesses making a loss each year yet carrying on quite merrily and paying no tax. Like someone once said 'you can't tax deflation'. Which is why, when the time comes, everything including the kitchen sink will be thrown at it. Hehe gunna be fun. Quote Link to comment Share on other sites More sharing options...
scepticus Posted November 6, 2014 Share Posted November 6, 2014 > We can't have falling prices, the govt should simply replace any fall in price with tax. They could call it the In the National Interest for constant inflation deflation tax. If the government is running a deficit still (which it is last time I looked) then those taxes raised on fuel get re-spent in the economy so its a wash. If the government uses the taxes to reduce the deficit then it has an economic effect broadly equivalent to a negative interest rate (e.g. deflationary). Ergo, the government cant reduce its real debt by taxing fuel, IMO. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted November 6, 2014 Author Share Posted November 6, 2014 And today we have.... Minister to call for fuel price cutTreasury minister Danny Alexander is to urge major fuel retailers to drop their prices after recent falls in the cost of oil. Is the US oil boom about to go bust? Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted November 6, 2014 Share Posted November 6, 2014 (edited) Looks like Scotland had a lucky escape....some North Sea production about to get mothballed on the basis that it is being extracted at a loss. I guess they negotiated that £1600 per capita welfare windfall at the perfect moment and really owes Yougov a glass of whisky or two. And I guess those Glaswegian tenants can afford to indulge now. Meanwhile Russia having no fall back position is about to completely slash its budgets. I guess they may have to cut back on the vodka and may be the Saudis on their shopping at the Mall. I guess oil prices were always about keeping idle despots in the manner they had become accustomed. Damn the shale gas and those pesky industrious Americans who actually work for a living. Edited November 6, 2014 by crashmonitor Quote Link to comment Share on other sites More sharing options...
R K Posted November 6, 2014 Share Posted November 6, 2014 (edited) Nothing to do with deflation and everything to do with Osbornes failure as Chancellor. Last throw of the dice to find cash for tax giveaways in run up to election. Danny Alexander is in the Treasury, he knows what hes up to. Edited November 6, 2014 by R K Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted November 6, 2014 Author Share Posted November 6, 2014 Osborne 'expects' fuel price cutChancellor George Osborne says the government will be watching petrol and diesel distributors "very carefully" to ensure they pass on falling oil prices to customers. George joins in the cut the fuel price, which naturally will mean reduced taxes on the variable part of fuel duty. Quote Link to comment Share on other sites More sharing options...
longgone Posted November 6, 2014 Share Posted November 6, 2014 when a litre of unleaded is a £1 you can believe what he says. Quote Link to comment Share on other sites More sharing options...
Rare Bear Posted November 6, 2014 Share Posted November 6, 2014 Crude is at least 25% cheaper than a year ago. The dollar is exactly the same. Petrol in my area has dropped 5%. The price of oil seems to have little to do with the price petrol. The thing is, when you buy fuel at the pump about two thirds of what you pay is tax. So the 25% drop in oil only applies to one third of the price you pay. A third of 25% is about 8%, a lot closer to the 5% you actually see. Quote Link to comment Share on other sites More sharing options...
OurDayWillCome Posted November 6, 2014 Share Posted November 6, 2014 The thing is, when you buy fuel at the pump about two thirds of what you pay is tax. So the 25% drop in oil only applies to one third of the price you pay. A third of 25% is about 8%, a lot closer to the 5% you actually see. That is why I said that the price of oil has very little to do with the price of petrol. Quote Link to comment Share on other sites More sharing options...
billybong Posted November 6, 2014 Share Posted November 6, 2014 According to the radio the supermarkets have responded by cutting their fuel prices by >>>>>>>>>>>>>>>>>>>>>....................................1p. Don't spend it all at once. Quote Link to comment Share on other sites More sharing options...
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