As UK petrol & diesel prices continue to rise many are starting to look at the government to reduce the massive fuel duty that we pay per litre. Depending on how you look at the petrol and diesel price & tax figures the tax on the per liter cost including VAT is about 70%. The following info is from this Wilki page.
From 4th January 2011 the UK duty rate for the road fuels unleaded petrol, diesel, bio diesel and bio ethanol is GB£0.5895 per litre (£2.65 per imperial gallon or £2.20 per U.S. gallon). Value Added Tax at 20% is also charged on the price of the fuel and on the duty.
Using the UK average untaxed pump price for unleaded petrol of £0.4572 per litre (from the December 2010 average taxed price of £1.221 per litre, the duty rate of £0.5819 per litre and the then VAT rate of 17.5%) this would give a January 2011 taxed price of £1.256 per litre (£5.71 per imperial gallon or £4.75 per U.S. gallon) – that is equivalent to a tax rate of 175%.
Diesel for use by farmers and construction vehicles is coloured red (Red Diesel) and has a much reduced tax, currently £0.1133 per litre.
Jet fuel used for international aviation attracts no duty, and no VAT.
So ok, onto the reason for this petrol / diesel prices post. I recieved the following ‘pass it on to 10 friends’ type of email:
Please see what you think and pass it on if you agree with it.
We are hitting £1.29 a litre in some areas now and soon we will be faced with paying £1.50 per litre. So Philip Hollsworth offered this good idea:
This makes MUCH MORE SENSE than the ‘don’t buy petrol on a certain day campaign’ that was going around last April or May! The oil companies just laughed at that because they knew we wouldn’t continue to hurt ourselves by refusing to buy petrol. It was more of an inconvenience to us than it was a problem for them. BUT, whoever thought of this idea, has come up with a plan that can really work.
Please read it and join in!
Now that the oil companies and the OPEC nations have conditioned us to think that the cost of a litre is CHEAP, we need to take aggressive action to teach them that BUYERS – not sellers control the market place. With the price of petrol going up more each day, we consumers need to take action. The only way we are going to see the price of petrol come down is if we hit someone in the pocket by not purchasing their petrol! And we can do that WITHOUT hurting ourselves. Here’s the idea:
For the rest of this year DON’T purchase ANY petrol from the two biggest oil companies (which now are one) i.e. ESSO and BP.
If they are not selling any petrol, they will be inclined to reduce their prices. If they reduce their prices, the other companies will have to follow suit. But to have an impact we need to reach literally millions of Esso and BP petrol buyers. It’s really simple to do!!
Now, don’t wimp out on me at this point… keep reading and I’ll explain how simple it is to reach millions of people!!
I am sending this note to a lot of people. If all of you send it to at least ten more (30 x 10 = 300)….and those 300 send it to at least ten more (300 x 10 = 3,000) … and so on. By the time the message reaches the sixth generation of people, we will have reached over THREE MILLION consumers! If those three million get excited and pass this on to ten friends each, then 30 million people will have been contacted! If it goes one level further, you guessed it…..
THREE HUNDRED MILLION PEOPLE!!!
Again, all YOU have to do is send this to 10 people. That’s all (and not buy at ESSO/BP). How long would all that take? If each of us sends this email out to ten more people within one day of receipt, all 300 MILLION people could conceivably be contacted within the next 8 days!!! Acting together we can make a difference. If this makes sense to you, please pass this message on.
PLEASE HOLD OUT UNTIL THEY LOWER THEIR PRICES It’s easy to make this happen. Just forward this email, and buy your petrol at Shell,Asda,Tesco, Sainsburys, Morrisons, Jet etc. i.e. Boycott BP and Esso.
Well I buy most of my fuel at Tesco’s anyway to help build up my club points. I do see one potential flaw in this plan I think. How many of the supermarket garages buy their fuel from a supplier such as Texaco (Chevron), BP or Shell? Oh, that’s another flaw in this emails plan, Shell is a petrol / diesel supplier like BP so as per the theory of not buying from suppliers you shouldn’t buy your petrol from them either.
Tescos supplier is Greenergy as per this Wilki answer. Not sure about Asda or Sainsburys. Morrisons supplier might be Harvest Enery as I found an article online stating that they were supplying Morrisions with a bio fuel. I think these fuel suppliers buy fuel from who ever is cheapest on the day, so they can supply the market chains with the cheapest petrol and diesel available.
Supermarket chains offer the cheapest petrol in general I think, helped by customers also shopping in their stores. At the end of the day though the commodities markets for oil and the oil suppliers will still control the price of petrol & diesel but here in the UK the government really needs to reduce the extortionate amount of tax they get from petrol to make a real difference. You should only ever have to pay VAT on petrol and not the extra tax that the government profits from. Here lies the dilema. Thanks to Labours stupid bank bailout the current government has to do all it can to increase tax revenue to get the UK back in credit. Government should start with the theory ‘charity begins at home’. I find it tough to swallow these austerity measures while the government still gives billions of pounds (that they don’t have) in aid to other countries, increasing the UK’s debt problem.
So what do you think? I’ve emailed the person who sent the email & let them know about this post as they didn’t seem to include a website to support their ‘call to action’.