Are petrol prices actually reducing in line with falling oil prices?

[Mecky]

If petrol gets to £1 a litre, which is far too much IMO anyway, and the greater percentage cost on fuel is tax, how is lowering the amount of taxation on fuel going to help the UK reduce its national debt which has doubled since 2010?

[truman]

If petrol gets to £1 a litre, which is far too much IMO anyway, and the greater percentage cost on fuel is tax, how is lowering the amount of taxation on fuel going to help the UK reduce its national debt which has doubled since 2010?

 

Who has lowered the amount of taxation?

[biotechpete]

Who has lowered the amount of taxation?

 

The drop in price will reduce the VAT paid.

[truman]

The drop in price will reduce the VAT paid.

 

Yep I know that... I'm fairly certain that the pennies in VAT that people save on filling up their tanks will be spent on something else that will attract VAT..does Mecky propose a rise in VAT on fuel I wonder..

[Frederick1]

I thought this was interesting...Government statistics for Petrol prices....it shows that since jan2014, Petrol prices have only dropped by 10.42 pence.....Compare that with drop in crude oil prices...

 

https://www.gov.uk/government/statistical-data-sets/oil-and-petroleum-products-weekly-statistics

 

You're right Pete! Oil prices have dropped by over 40% since this summer.

My local petrol has gone down just under 9%!

 

[biotechpete]

Yep I know that... I'm fairly certain that the pennies in VAT that people save on filling up their tanks will be spent on something else that will attract VAT..does Mecky propose a rise in VAT on fuel I wonder..

 

That's a good point.

[Mecky]

Now they can't be bothered http://www.bbc.co.uk/news/business-30525539

[dira]

I dunno, I don't know whether we should be happy or sad when world oil prices drop drastically

Edited December 18, 2014 by dira

[Jeffrey Shaw]

You're right Pete! Oil prices have dropped by over 40% since this summer.

My local petrol has gone down just under 9%!

But, as already explained, the largest on-costs are Excise Duty (quite distinct from VAT) and Fuel Duty.

For more, see https://www.gov.uk/government/publications/rates-and-allowances-excise-duty-hydrocarbon-oils and https://www.gov.uk/fuel-duty

[malcolm717]

The price of oil has dropped to half what it was a few months ago. The price of petrol/diesel dropped to around 114 a litre generally. But in some garages it has begun to creep back up yet the price of oil is still dropping. Asda and Tesco is 111.9. as it has been for some weeks. Yet some garages such as the Esso Garage at the Altas Junction in Brinsworth just up the Bawtry Road from Tinsley is 115.9 !! yet one a mile away it is 112.9.

Can anybody explain why the drop in prices of raw oil isn't being passed on to us poor motorists especially by some garages such as the above. Are they just fleecing people ?