Tuesday, October 28, 2008

Oily Bastard

Fresh from taking credit for lowering global oil prices - which he has actually had nothing to do with - Gordon Brown has again called for petrol prices to be cut. There is a degree of logic in his argument; oil prices have halved, and yet the price at the pumps has only changed by about 10% and oil companies are currently making record profits.

But it really needs to be pointed out, time and time again, that the reason why petrol costs so much in the first place is because there's so much tax on it. As this graphic from the BBC shows, for a litre of unleaded petrol selling at £1, over 65p of the price is duty and tax:

Opposition politicians have echoed Brown's calls for lower fuel prices, which is both welcome and massively annoying. It is correct to say that since oil prices have effectively halved, it is wrong for fuel companies to retain their profit mark-up from when the prices were at their highest. But I do wish both the Conservatives and the press would mention to Brown just how much he could help people pay their bills if he stopped taking such a big slice of the cake.

1 comment:

Big Jeff said...

Too Right.

But all parties need to fleece the motorist - so all will be quiet

Over £50 BILLION annually - or about 10% of what is needed to run UK PLC.

What I want to know is where that dough will come from when we stop using oil.

Have not heard any Greeny/Greasy MP telling non-car owners that once environmentalists have strangled the golden oil-goose, they will have to pay up to the tune of £50 Billion.