Petrol Price Debate

With daily news reports appearing on our televisions and in our newspapers, i decided it would be topical to eek out this category and air my views on this very hot topic.

Between 71.3 and 76 percent of the price of fuel (depending on octane/diesel etc) is taken in tax.
Not only is it heavily levied as road fuel, but added on to that we pay 17.5% VAT.

Presently we are faced with two possible increases, firstly price increases from suppliers as a result of the state of terrorism and wars that seems to have gripped the world.
The second looming increase is a possible proposed taxation increase, possible of about 2 pence on each liter we purchase.

The oil Barons and companies that supply fuel have made billions of pounds selling their wares and many are surrounded with ethical dilemmas about exploitation, power struggles and price fixings. What ever their position is, they make money and as any buisness will know, that's why you are in buisness in the first place. What we can see quite clearly is that for providing a substance that offers us fuel to supply cars, aero planes and even to keep us warm, to ship it a huge distance and make a profit, they charge a tiny percentage of the total cost. Their own price increases usually reflect the general world state at the time and are often well below our rate of inflation.

The petrol stations and supermarkets that serve us with the fuel for our cars also are in buisness to make a profit, which most do quite nicely thank you. It is noticeable however that many smaller stations have disappeared from our streets since supermarket chains took a more major role in supplying fuel, so one might be forgiven for thinking that the profit margin is slim pickings.
The up side to the chain stores newer string to their bows, is that it has kept fuel competitively priced with regards to the retailer mark-up. The all familiar price wars amount the supermarket chains has left us with regular money off coupons (for up to 5 pence a liter) and more accessible places to tank up. Not to mention keeping their profit margins to a minimum, hence a better deal for us.

Like most things in life, quantity has a huge affect on price. Stations dealing in thousands of gallons of fuel per day has lower overhead to product ratio costs, so they can afford to keep the prices lower.
When it comes to the money the retailer makes, i find it very hard to be critical in view of the fact that they are in buisness.
It's well worth rembering that your local corner shop needs to add at least 50% on top of the goods price before they sell it, just to cover their overheads. In the cases of many clothing giants with trendy high street names, the total increase after purchase can be higher than 400% !! Bear this in mind when you get ready for an evening out in your nice Top Shop trousers and shirt, climb into your car and then grumble about the price the garage charges you for your petrol!

I think by now you should have gathered that I don't have any beef with the suppliers and retailers of petrol. What I do have a huge beef with, is the exorbitant amount of tax we are forced to pay upon the fuel.

We pay more per liter than just about any country in the whole world, and in many cases a huge amount more than other countries who also tax fuel.

Ok, so 17.5% VAT is the standard amount we pay on all commodities, so whilst no one likes to pay out money, it does seem reasonable for the government to generate some revenue by that method.
Now think on further to the rest of the levy imposed on fuel purchases and already I feel the colour coming to my face as my temper rages.
Point of thought....don't we already pay road tax?..oh yes, so we do, and incidentally that is also higher than almost any other country that employs road tax. Don't we have far less road legnth per capper (miles of road per driving person) than almost any other country? Anyone see an anomaly?, especially as the condition of the roads isn't anything to write home about.

So where does all this money go? Does it simply pour into the government coffers to pay for what ever they feel like? Does it pay for some of the huge bills we get from the EEC, towards the health service, education, politicians pay packets, police, road repairs and maintenance, or maybe to pay towards the governments aslyum policies ??
Now I'm not stating any opinion on any of the other services or policies that exist, and even after exhausting research on the Internet I cannot find the answers. I simply don't know exactly where or for what the money goes. I do know that I pay road tax towards the maintaining of the roads i drive on. I also know that I already pay high premiums for the privilege of being able to get to work without walking the 6 miles that has no public transport system to negotiate it.

Income tax is a pretty fair system, it is an equally applied system that takes money from each and every one of us towards things that each and every one of us needs, uses or may well need at some point.
As a car driver paying huge taxation on my fuel I am scepticle that i am paying a fair share of money towards things that are nationally required. Now if I were paying 76 pence in the pound towards cleaning up the environment, recycling cars and developing more economic and environmentally responsible engines then I would be a far less unhappy bunny.

Even if all the extra tax I was paying on fuel went towards improving the environment which I as a car driver damage, I would still question the level of taxation.
Despite being possibly the most unpopular and highest taxation in the UK, it has never been reconsidered. As far as i am aware, the people of the country have never had a direct say in it either (except by choice of political party elections). It's quite noticeable that it a matter than never appears on political party agendas either, but then why should any party vaulantarily shoot the golden goose.

So to my final thoughts..... The tax level on fuel is not acceptable, not clearly explained, nor fairly applied. It is an allrming amount unjustifiable by any measure. What would be interesting would be the affect on government revenue if each and every vehicle user were to forgo just 1 liter of petrol per week. Not an unachievable target should the country stick together and not an unrealistic target that should only cause minor inconvenience. I'm quite sure that most of you who drive a car can find away to avoid about 10 miles of travel a week for a few weeks.
If every driver who did that also wrote a letter of complaint to the government about the level of taxation it would be even better!!
I would dearly like every vehicle driver in the country to simply not drive for just one day, unfortunately that's alot to expect and the very people and companies who are fighting for survival due to the price of taxation are likely to be the ones who would suffer most from a day of no driving.

Like most things in life, the taxation is neither right nor fair and a hard fight would have to be waged to do much about it. Just like in life too, it's one of those things that is well worth fighting for.

* * * * Thank you for reading ~ i would appreciate any of your views and input about this matter * * *