Petrol Tax?

Question

With the increase of fuel prices all over the world and spacificaly in Great Britain.

Why doesn't the gorvernment try and step in and help the people. For intance they must be raking in more fuel tax revenue since the increase, why cant they reduce their tax to what ever they were getting before the hike in price, and pass it on to us.

Surely that would bring some sort of popularity back to the failing government.

Answer 1

popularity vs money....

they've a war to pay for!

Answer 2

That's what the public would expect - but unfortunately the Government isn't as simple as that; and plus the MPs have to line their own pockets as well >:(

Answer 3

You're right.Around 65-70p of the price of a litre of fuel is tax.When Gordon Brown met oil producers to complain about fuel costs and what could be done to get prices down they had one simple answer for him.....cut the tax but he won't.

Answer 4

The current use of crude oil does not reflect it's actual value. Since it is a finite resource it needs to be consumed less in the long run.

If a government sponsors the traditional use of gasoline by cutting taxes, it does not encourage a different approach by consumers and industry. Consumer demand drives markets and markets react by adjusting production. Since OPEC can produce more oil and still observe rising prices the traditional lever of reducing crude oil costs does not work anymore.

As bad as it is, the state has to keep the tax up in order to force a change in consumer habits to adjust the market away from excessive oil consumption.

If you lower the tax and the behavior doesn't change, the inevitable crash will be even worse. This way you have a phase of adjustment. Still it hurts a lot.

It took me a while to accept this mechanism, since I also voted for tax reduction before. However, in the long run it is necessary to migrate to alternatives. Might as well be doing it now.

Answer 5

You are absolutely right and the higher oil prices go, the more revenue in tax this greedy Government takes.  Makes me sick as European fuel prices are much lower and need I even mention the Americans.  No other nation stands for such robbery as the British and I admire the lorry drivers for their stand on the subject.  Get rid of the Government. All the ones in Parliament have their expenses paid by us!!!!

Answer 6

Yes they could! BUT they won't because they've already bankrupted the country

Answer 7

But then we have tough targets to try to cut emissions which is what the taxes were supposed to "encourage"

Answer 8

They don't want to 1) give the money back they are taking from the people and 2) they don't want the people to get market signals that now is a good time to get a car or start driving.  Say hello to big-brother socialism.

Answer 9

Why would they bother when they have a captive population. How many people in this country can really do without a car for work or family? Both my husband and I work in towns 5-10 miles away with antisocial hours for my husband and being a dancing teacher I have too much stuff to take to get a bus. And I'm sure we are not alone in this situation. So again I ask what is their insentive to lower tax when they know we have to buy fuel? Scinical but I feel justified.

Answer 10

Excellent question...Gordon Brown had the cheek to go and try to negotiate with the Oil Sheiks to lower their prices when it's HIS 65% taxes that makes our petrol and diesel so ridiculously expensive.  Why doesn't he just cut that?? ..

Even if the price of oil WAS cut the prat would still raise the price by adding more tax.

He's pandering to the green over-reaction to emissions.

Modern cars are MUCH more efficient than they used to be and if ALL of Britain's cars were taken off the road tomorrow the difference to world CO2 levels would be miniscule.It's all a con to squeeze money out of easy targets...motorists.

Answer 11

All these suggestions floating around have both advantages and drawbacks. If things keep going the way they are; however, they will have to do something.