When will higher fuel prices inpact on inflation?

Tony

The answer is that they are already impacting and without those increases, inflation would be lower than what it already is.

The good news that the Pound is relatively strong and there is little inflationary pressure at present. That is why I cannot see interest rates going up, I honestly think they have peaked.

Regards

Mick

The answer to the your question is yes but its worth remembering the following:

using pump price of 90.9p
VAT (tax on Tax)= 13.5p
without VAT = 77.4p
Fuel tax = 48.82p
UNTAXED PRICE (drum roll) = 28.5p (yes)
Total tax = 62.4p
% which is tax = 69%
Overall tax rate = 318%

quote:

Originally posted by Martin D:
The answer to the your question is yes but its worth remembering the following:

using pump price of 90.9p
VAT (tax on Tax)= 13.5p
without VAT = 77.4p
Fuel tax = 48.82p
UNTAXED PRICE (drum roll) = 28.5p (yes)
Total tax = 62.4p
% which is tax = 69%
Overall tax rate = 318%

or to put it simply petrol is getting expensive!

You could say that or disproportionately shafting us. I’m not against tax per se but this is bloody taking the piss (and my money) to another level.

You'll start to notice it on May 6th

bob

Tony,

I work in a related industry and we (the consumer) have yet to see the impact of current crude oil prices (save at te petrol pump and utility costs), it has only been in the last couple of months that the manufacturing industry are getting price increases (conseqence of raw material and energy costs) through to the retailers. I expect we will on a global basis start to see rising costs of manufacturing goods as we have already seen lower profitability in the manufacturing sector. UK plc may well have to go the way of the US (ever increasing debt, strong trade imbalance) to maintain current growth levels. Not a good thing in my book.

Matthew

Chaps

You cannot have it both ways. If fuel becomes cheap, we will use more of it and pollute the environment for our children. High taxes encourages us not to over use the highways and is a good way of raising taxes.

You choose the way you want it.

The effects of oil price increases are over shadowed by the strength of the Pound. Inflation is around 2.5% and that is close to deflation which is hell of a lot worse than inflation.

Inflation causes people to buy now in anticipation of price increases, deflation means no one buys today because the cost of goods will be lower next year. Therefore workers get laid off, they have less money, so less gets bought and the cycle continues.

The high fuel prices help counter balance that effect, so do not complain about it too much.

Regards

Mick

The user pays. Which makes a change.

Nime

This was the same Mick who said that as a result of fighting the war in Iraq, oil prices would come down and this would be a good thing.

To add:

Higher oil prices will do nothing to benefit the global environment as they are a direct result of increased global demand (and consumption) - notably by the Chinese.

If anything, a drop in the price will suggest a fall in demand, and only this will be beneficial to the global environment.

Our government will probably commit economic suicide by allowing taxes on fuel to tip over an optimum level that ensures a healthy economy in turn generating the requisite revenue for the Treasury. As revenue from tax derived from fuel increases, overall revenue will fall.

Long term it might frighten complacent governments to actually do something about our oil-greedy world.

Estimates of total world reserves are probably based on the previous status quo. With communist countries extremely vehicle-poor in comparison wih the West.

But what happens when the rapidly growing Chinese and East European middle classes (in their many-millions) demand the right to drive 7 litre SUVs to show off their new status? Closely followed by the billions of the Chinese working class dropping their bicycles for a modest motor vehicle as inevitable wage increases begin to give them real purchasing power.

Slave wages for the workers in all other mass-production ecomomies of the past have resulted in improved incomes eventually. If the Chinese and East Europeans try to cap wages at present levels while alowing the entrepreneurs to grow fat, like British mill & factory owners of the past, then the lid will quickly blow off.

Nime

Mr Toy

I suggest you stick to taxi driving because your knowledge of the energy markets is less than that of a schoolboy.

The price of petrol has NO relationship to the price of oil. The price of petrol is determined primarily by tax and distribution.

The price of oil is rising because the USA is continuing to stock pile and also of uncertainty of middle east security.

The Chinese economy has little effect on oil prices. Goods that are made in China are not being made elsewhere, so the oil is only being diverted.

There is enough oil in China to meet its own demands as well as exporting in quantity for the duration of our and our childrens lives. The same applieds to Russia.

In twenty years these two countries will dominate OPEC which is now rapidly losing
its influence.

Basically the world has more than enough oil to meet world wide demand for global consumption which will lead to an overall lowering of price.

Stick to talking about amplifiers and bog seats, you are good at that.

Regards

Mick

PS Just to respond on another of your brain dead comments, If Saddam had still been in power, he may well have manipulated oil supplies to his advantage. Removing him was well worth the price and before the anti's start whinging, let us see if Blair is re elected or not as a judgement.

I thought fuel prices always rose sharply in the period before a general election.

I've always assumed this was a ploy to enable the incoming government to reduce them sharply -- the result of a tacit arrangement.

From memory, this seems to happen every time.

quote:

The price of petrol has NO relationship to the price of oil. The price of petrol is determined primarily by tax and distribution.

Hmmm, so the increase in the price fuel at the forecourts, which has, for the first time gone through the 90p/l barrier for diesel has nothing to do with the price of crude oil then. The fact that crude is also sky-high is obviously just a coincidence.

I do wonder why the difference in price between unleaded and diesel has increased in recent months from 1 or 2p to 5 or 6p.

Unleaded is now 85.9p/l whilst diesel is 90.9p at most forecourts near me.

Typically you'd see 81.9 and 83.9 respectively only a few months ago.

Steve
supply and demand ?

Steve - according to the press there is a shortage of diesel in the UK, the increase in diesel cars has caught the refineries out - hence the price increase.

quote:

Originally posted by Mick Parry:
There is enough oil in China to meet its own demands as well as exporting in quantity for the duration of our and our childrens lives. The same applieds to Russia.

In twenty years these two countries will dominate OPEC which is now rapidly losing
its influence.

In twenty years none of us will be here, so I'd not worry too much. If global starvation (predicted for 2023 by, was it WMO?) doesn't get us first, the deteriorated seals on the warheads on the Russian sub Konsomolets will have rusted through, allowing enough radiation into the sea to kill every living organism on earth.

quote:

Originally posted by Mick Parry:
Removing him was well worth the price and before the anti's start whinging, let us see if Blair is re elected or not as a judgement.

If Blair gets re-elected, then something's rotten in Denmark. All IMHO of course... I'd like to see someone wipe that smarmy grin off the oily get's face... Charles Kennedy might well just do it (the Conservatives are hapless - let's face it!).