Inflation rate jumps to 2.9%

anticonscience said:
It's only a matter of time before The Sun start a campaign about the cost of fuel duty, the truckers will then threaten to block the roads, and then the supermarkets will lower the prices.

then the government (be that Tory or Labour or Brand X) will then up duty some more to raise prices again.

I really wish I could get rid of my car.

:(
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I wish I could get fuel for my car without having to hold my ankles while I do it?

I love my car. I hate tax, petrol companies and almost everything you can think of :p
 
mr_x_plosion said:
The oil companies should never be allowed to make such high profits.

I remember the days of 79p a litre and thinking it was expensive.
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Don't forget a large % of that cost goes to the highway bandits, I'm sorry the government.

Biohazard said:
I love my car. I hate tax, petrol companies and almost everything you can think of :p
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I love mine too, but I detest having my pants around my ankles and being shafted, HARD, over the running of it.
 
Greebo said:
Not sure how much Opec is to blame for this one. The price of a barrel of oil is half of what it was in July 2008 (it has been rising recently but has fallen all week) yet the price of a litre of petrol is not half of what it was in July 2008.:confused:

July 2008 - £1.18 per litre (national supermarket average)
Dec 2009 - £1.06 per litre (national supermarket average)

So it's 10% less when it should really be 50% less and around 53p per litre.

So I'm guessing it's the fuel/refinery companies are keeping the majority of the extra difference (some has gone in duty and vat increases of course but Dec was still 2.5% less VAT than July 2008 so would offset some of the tax increases anyway).

Easy for them to let OPEC take the blame as most people do when they hear that the price of a barrel of oil is rising and hence next week the cost of petrol at the pump increases.

The truth is they never dropped the price of petrol to as low as they should have done. AFter all Shell has to try and keep making its £20billion and Bp it's £10billion annual profits which is hard to do if the price of crude drops unless you don't drop your pump price by as much as you should. ;)
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That'd all make sense if the cost of oil was 100% of the cost of fuel, but it isn't. In fact - http://www.petrolprices.com/fuel-tax.html

"2009 fuel duty (as of 1 September 2009) in the United Kingdom is:

* 56.19 pence per litre for main road fuels, unleaded petrol and diesel"

Plus VAT and any other stealth tax on there.
 
Isn't this a good thing?

Few months ago people getting scared about deflation...economy going down...pound falling...

Now with inflation..won't that push the economy up..make the pound stronger...increased prices..increased profits...increased wages..?
 
Cyanide said:
That'd all make sense if the cost of oil was 100% of the cost of fuel, but it isn't. In fact - http://www.petrolprices.com/fuel-tax.html

"2009 fuel duty (as of 1 September 2009) in the United Kingdom is:

* 56.19 pence per litre for main road fuels, unleaded petrol and diesel"

Plus VAT and any other stealth tax on there.
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I think the total including VAT is now 65% of the cost of a litre however it still stands what I said (unless you have a massive increase in tax).

If petrol was say £1.00 per litre and 35p is the refined cost and 65p is tax then if the refined cost was half at 17.5p, the tax would only be 32.5p and hence the pump price would be half at 50p.

So from July 2008 to Dec 2009 when there was hardly any increase in tax yet the price of oil fell by half, you would expect to see mroe than 10% less at the pumps.

However, I will agree that over the years the amount of tax has grown and grown on a litre a fuel and is now at silly amounts. Every 1p increase due to the cost of crude going up means 1.65p on the pump price.
 
mr_x_plosion said:
What? :eek:

Maybe I should rethink my plans of buying a 330i :(
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Whilst I doubt it'll be 15p extra by April the only viable trend for retail fuel is upwards. Any car purchase decisions you make should be made with a projected fuel cost of £1.50 a litre within 18-24 months to avoid you finding yourself in hot water.
 
mr_x_plosion said:
Does this mean even higher petrol prices on the way? 112.9 per litre is already way too high.
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Depends on the exchange rate I think since we are importers but thats related to inflation so yea

Bank of england has doubled the money supply, in 12 months we printed even more money then the 12 trillion indebted USA, so this trend is likely to continue I guess



The Mad Rapper said:
For you and a lot of other people. That said, perhaps such rates would force a return to prudence and a firm grasp of our finances. There does need to be an end to the cycle of cheap credit.
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Unfortunately the government doesnt agree and has increased spending, the net effect is not positive



Jonny69 said:
That's a bit annoying, been slayed on my savings for ages and was hoping to get a mortgage this year :(
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A mortgage deal can be arranged months before buying the actual house I think. If you want a good rate the sooner the better
 
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[TW]Fox;15773552 said:
Whilst I doubt it'll be 15p extra by April the only viable trend for retail fuel is upwards. Any car purchase decisions you make should be made with a projected fuel cost of £1.50 a litre within 18-24 months to avoid you finding yourself in hot water.
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Ouch! Do you realistically expect prices of £1.50?
 
The problem we've got is that although 2008's price rises were as a result of increases in oil prices, when prices retreated our fantastic Government saw it as an opportunity to increase duty on no less than THREE seperate occasions - thats 6p a litre, then + VAT - more expensive even if prices retreated to early 09 levels!
 
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