Inflation rate jumps to 2.9%

Greebo said:
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.
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Doesn't quite work like that, there is (as posted) a 56.19 'duty' on fuel, and 17.5% VAT,

So using some of your figures:

If the price of the actual petrol was 35p (thats the crude oil, refining, profit to oil company, running costs of petrol station and profit for petrol station), then the end price would be (35 + 56.19) * 1.175, or 107.15p per litre.

If the petrol price halved to 17.5p, then the end price would be (17.5 + 56.19) * 1.175, or 83.52p per litre.

So a halving of the petrol price gives a ~22% reduction in the cost of petrol, given the above figures, also note that since the petrol has roughly halved we've had 2 or 3 raises to the duty (of around 2p a time iirc)

I really hope my maths is right there... :p
 
mattheman said:
No we are going to see the 2nd crash come into play, and its a big one.
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Think you took a wrong turn... Here, let me help - www.housepricecrash.co.uk

Your comment at least will be welcome there in amongst all the other crap about this. Seriously, that site has been saying there will be a huge crash EVERY year for the past decade.... Sure, they might end up being right but that will be sod all to do with an accurate prediction and more to do with the fact they just say it EVERY year but will that stop the idiots saying "told you so, told you so" ?.... Yeah you told me so EVERY year for the past decade you fools :rolleyes:
 
Richie said:
Think you took a wrong turn... Here, let me help - www.housepricecrash.co.uk

Your comment at least will be welcome there in amongst all the other crap about this. Seriously, that site has been saying there will be a huge crash EVERY year for the past decade.... Sure, they might end up being right but that will be sod all to do with an accurate prediction and more to do with the fact they just say it EVERY year but will that stop the idiots saying "told you so, told you so" ?.... Yeah you told me so EVERY year for the past decade you fools :rolleyes:
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there are plenty of people on that site that say there won't be a crash.
 
SKILL said:
Doesn't quite work like that, there is (as posted) a 56.19 'duty' on fuel, and 17.5% VAT,

So using some of your figures:

If the price of the actual petrol was 35p (thats the crude oil, refining, profit to oil company, running costs of petrol station and profit for petrol station), then the end price would be (35 + 56.19) * 1.175, or 107.15p per litre.

If the petrol price halved to 17.5p, then the end price would be (17.5 + 56.19) * 1.175, or 83.52p per litre.

So a halving of the petrol price gives a ~22% reduction in the cost of petrol, given the above figures, also note that since the petrol has roughly halved we've had 2 or 3 raises to the duty (of around 2p a time iirc)

I really hope my maths is right there... :p
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Ah I see your point. I didn't realise or forgot that duty is a fixed amount and not based on a perentage.

However, even at a fixed amount and with 6p of duty increase less 2p off for the 2.5% VAT reduction we had in December it should be stil 87p per litre now and not the £1.06. So who's got the extra 20p then?
 
[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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Ah well, the Saab is currently averaging 27mpg, a fair amount of motorway, 15 mile trips taking 20-30 mins, with me being as gentle as possible (hard to drive it off boost) the 330 can't be far off that. :)
 
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