Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Oil Price Falls Georgie About To Up The Tax On It To Stop Deflation?

Recommended Posts

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

Shame there's only one thing I want to buy with my savings, and it won't be deflating in price any time soon.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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. :ph34r:

Share this post


Link to post
Share on other sites

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. :ph34r:

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.

Share this post


Link to post
Share on other sites

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 by Corruption

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

> 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.

Share this post


Link to post
Share on other sites

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 by crashmonitor

Share this post


Link to post
Share on other sites

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 by R K

Share this post


Link to post
Share on other sites
Osborne 'expects' fuel price cut

Chancellor 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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

According to the radio the supermarkets have responded by cutting their fuel prices by >>>>>>>>>>>>>>>>>>>>>....................................1p.

Don't spend it all at once.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   217 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.