Does
The Cost of
Fuel Make Your Blood Boil?
We
receive literally hundreds of letters from UK drivers
furious about the cost of fuel in Britain so we've
come up with an idea that can change the situation.
Here's an idea of what consumers in the UK pay (varies
almost daily except for the percentage of tax):
| Cost
per litre of crude oil extraction: |
8p |
| Cost
per litre of refining: |
2p |
| Cost
per litre to transport to UK: |
2p |
| Cost
per litre to transport to pumps: |
5p |
| UK
TAX: |
60-65p! |
| Gut
wrenching total: |
More
than 85p
per Litre - The highest in Europe and possibly
the world!!! |
YOU
CAN MAKE A DIFFERENCE!
Campaign
to Reduce UK Petrol Tax - a rip-off at approaching £1.00
a litre
Step
#1: SIGN THE PETITION We'll
keep you
up to speed on progress and when we feel we have enough
support pass over the petition to Number 10:
Step
#2: COPY
AND PASTE THE FOLLOWING AND FORWARD TO EVERYONE YOU KNOW
AND A COPY TO THE CHANCELLOR:
Copy and past tutorial
Contacting
ministers
Emails and letters for the Chancellor and his ministerial
team come in the first instance into HM Treasury's Correspondence
and Enquiry Unit and then are sent into the Chancellor's Private
Office. All correspondence received is replied to, within 15
working days and so you will receive a response.
To email the Chancellor or the ministerial team, the address
is:
ministers@hm-treasury.gsi.gov.uk
and to send a letter the address is:
Rt Hon Gordon Brown MP
Chancellor of the Exchequer
HM Treasury
1 Horse Guards Road
LONDON SW1A 2HQ
You can also fax correspondence on 020 7270 4580
Subject: Mr
Chancellor, We're Sick of Being Ripped Off! - Reduce
UK Petrol TAX NOW!
Body:
We are rapidly heading to £1.00 a litre, the
vast percentage of which is TAX (in
the form of fuel duty or value added tax) and is somewhat
higher than the European average, and dramatically
higher than other developed countries such as the United
States and Australia.
Want
petrol prices to come down? We need to take some intelligent,
UNITED action and persuade the Government to change
policy on levying such heavy taxes on fuel.
BanThePumps.com is pushing for ALL British drivers
to take action. United we can influence Government
policy.
In
2002 Britain was brought to a standstill by the fuel
blockades - they didn't work!
The
'don't buy petrol on a certain day' campaign failed!
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,
BanThePumps.com, has come up with a plan that can really
work. Please read on and join in!
Now
that the Government has conditioned
us to think that the cost of a litre is CHEAP at
77p - 80p, we need to take aggressive action to make
them listen to the fact that we really have had enough
of being RIPPED OFF!
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 the Government
backs down and stops fleecing the UK motorist with
disproportionately high taxes.
And
we can do that WITHOUT hurting ourselves.
Here's
what you need to do:
Simply
forward a copy of this email to everyone you know and
a copy to the Chancellor:
To email the Chancellor or the ministerial
team, the address is:
ministers@hm-treasury.gsi.gov.uk
and to send a letter the address is:
Rt Hon Gordon Brown MP
Chancellor of the Exchequer
HM Treasury
1 Horse Guards Road
LONDON SW1A 2HQ
You can also fax correspondence on 020
7270 458
But
to have an impact, we need to reach literally millions
of UK petrol buyers. It's really simple to
do!!
Keep
reading and I'll explain how simple it is to reach
millions of people!!
Send
this e-mail to everyone you know and sign the petition
at www.banthepumps.com
If
each 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!
Again,
all YOU have to do is send this to
10 people, but send it to everyone to get the message
out there.
That's
all .
How
long would all that take?
If
each of us sends this email out within one day of receipt,
all 30 MILLION people could conceivably be contacted
within the next 8 days!!!
I'll
bet you didn't think you had that much influence, did
you!
Acting
together we can make a difference. If this
makes sense to you, please pass this message on.
PLEASE
HOLD OUT UNTIL THE GOVERNMENT FINALLY YEILDS AND
STOP FLEECING THE BRITISH DRIVERS AT EVERY OPPORTUNITY.
Action:
It's easy to make this happen. Just forward this email to everyone you know,
and and a copy to the dear old Chancellor... and don't forget to sign the
petition at www.banthepumps.com
Best
Regards
BanThePumps.com |
 |
UK
fuel tax: The facts
The price of fuel in the
UK is a complicated business and it changes month to
month as the cost of crude oil rises and falls with international
demand.
British drivers also pay two
taxes on the petrol they buy at the pump: Fuel Duty and
VAT. Of these, fuel duty remains by far the most significant
- and remains the most controversial.
Fuel Duty
If a litre of unleaded petrol costs 85p,
21.7p will be the production costs and profit, around 51p
will be duty and 12.5p will be VAT on top of all that. |
According to figures released,
the Government forecasts that fuel duties will continue to
rise rapidly. It's a lot of tax, but the Institute of Fiscal
Studies, an independent think tank, says that the large rises
in fuel duty began as far back as 1979.
Fuel Escalator
The major change in petrol taxation came
under the Conservatives in 1993 with the introduction
of the Fuel Price Escalator.
The escalator was designed as a means
both to raise money and discourage car use on environmental
grounds.
At the time, British fuel was the third-cheapest
in Europe. It is now the most expensive.
The annual fuel escalator was set in
1993 at 3% above the rate of inflation.
On its introduction it added three pence
to a litre of fuel and raised the tax burden on unleaded
petrol to 72.8% of the total cost. When the Conservatives
left office in 1997, the escalator was at 5% and had
contributed a 11.1 pence rise to the cost of unleaded
fuel. Tax as a proportion of total cost stood at 76.3%. |

|
Labour's record
On taking office, the new chancellor Gordon
Brown increased the fuel escalator further and put three pence
onto a litre of petrol in his first Budget. That pushed taxes
up to 81.5% of the total price of fuel. While duty rose by
two pence a litre as part of the 2000 Budget, Gordon Brown
also scrapped the fuel price escalator, saying that future
increases would be decided on the basis of the "due
Budget process".
At the time, and perhaps rather ironically
given current events, the AA said that it was the first budget
in seven years in which "drivers can take some heart".
According to the Tories this isn't good enough.
They say that since Labour came to office,
the petrol pump price of unleaded petrol has risen by around
71%. And while there have been large jumps in the price of
oil, the party blames what it says is Labour's 16p per litre
rise in taxes.
Figures from the Institute of Fiscal Studies
tell a slightly different story. The Conservative figure of
16p per litre is a combination of duty and VAT. While the actual
amount brought in by VAT rises with increases in fuel prices
and duty, it is calculated at the same 17.5% level which the
present government inherited from the Conservatives.
VAT campaigning
Fuel campaigners argue that VAT should only be calculated
on the cost of the fuel rather than on the fuel and the duty
together.
If VAT was not charged on the duty, the motorist would save
around 8p per litre at September 2000 prices. None of the parties
appear to support that move.
Leaving aside VAT, fuel duty increases under Labour amount
to 12 pence per litre - just slightly more than the rise caused
by the escalator under the Conservatives.
Because of the rise in world oil prices, the proportion of
the total fuel cost that is tax has fallen from 85% (March
1998) to 72.3% today - still one of the highest levels in the
world - something that ministers have sought to stress in interviews.
With the Tories pledging a three pence a litre cut should
they come to power, the question is whether the Government
should cut fuel duty - and whether the country can afford it.
 |
August 2005
On Sunday August 7th the UK average price of Unleaded passed
the 90p a litre barrier for the first time ever. Prices
rose during the month due to continued rises in the price
of crude oil, which tipped $67 a barrel in early August.
Prices during August to date have been over $60 a barrel
(average daily closing price for Brent Crude in July
was $57.97).
Unleaded prices rose this month by 2.3p per litre (10.5p
per gallon), Diesel by 2p per litre (9.1p per gallon),
and Super Unleaded by 2p per litre (9.1p per gallon).
Northern Ireland now has the highest average price for
both Unleaded and Diesel. Wales and the South West have
the next highest average prices, with Yorkshire and Humberside
having the cheapest prices.
At Supermarkets Unleaded rose by 2.6p per litre (11.8p
per gallon), Diesel by 2.4p per litre (11p per gallon),
and Super Unleaded by 2.5p per litre (11.4p per gallon).
Supermarket prices for Unleaded and Diesel are both 1.2p
a litre below the UK average.
LPG rose by 0.4p per litre, although it rose by 1.2 p per
litre at Supermarkets.
See
current fuel prices |
More about the Blockades: UK
fuel protest
The fuel protest was a series of protests held in the United
Kingdom in 2000 over the cost of petrol.
The protests began September 5 2000 when
an upward shift in the price of crude oil prompted major
oil companies to announce an increase in the price of petrol
to around 81 pence per litre of unleaded (£3.60/$6.50
per gallon). The following day some lorries blockaded the
entrance to the British side of the Channel Tunnel, causing
heavy delays on the M20 motorway. The following day a further
group of protesters, again from the haulage industry, blockaded
the Stanlow Shell Oil refinery near Ellesmere Port in Cheshire.
The oil industry were the target of some of the protesters'
ire because of their failure to pass reductions in the (highly
variable) price of crude oil but speed at passing on prices
increases. However the primary target was the Government's
fuel tax policy. The British figure of three-quarters of the
cost of petrol being tax (in the form of fuel duty or value
added tax) is somewhat higher than the European average, and
dramatically higher than other developed countries such as
the United States and Australia. The fuel protesters said that
this disparity was making it increasingly difficult for the
British haulage industry to remain competitive with their European
rivals, especially since the introduction of the European free
market on December 31 1992. The situation led to a difficult
position for the oil companies - it was actually perhaps in
their long-term interest to support the protesters because
if the pressure on the Government succeeded in reducing fuel
tax, then consumers would likely buy more petrol, increasing
profits for the oil companies. Because of the temporary chaos
that ensued it was politically impossible for the companies
to come out in support, some commentators suggested that they
did not do all they could to get lorries carrying fuel through
the assembled protesters. The oil companies responded to this
by saying that although they could get lorries through at some
depots, they refused to do so on the account of the safety
of the drivers.
By Sunday the 10th of September six of
the eight major oil refineries around the country had been
blockaded by protesters. Drivers, realizing that no new petrol
would be heading to petrol stations, started "panic buying" petrol while it
was still available. This itself had the effect of hastening
a petrol shortage because petrol stations operate a tight "just
in time" policy to minimize operate costs that does not
allow for dramatic upswings in demand. Some economists chastised
the Government for calling the phenomenon "panic buying",
saying that on the contrary the behaviour was rational in the
circumstances. Local radio stations ran phone-ins advising
drivers where fuel had not sold out.
By Tuesday the 12th of September, one-third
of all stations in the country were reported to be completely
without fuel. Various reports indicated between 75 and 90%
of stations were closed at some point during the crisis -
many stations closed before they were completely empty in
order to lengthen the time they were to supply emergency
services. On the morning of the 12th Tony Blair was driven
back to London from Newcastle in order to deal with growing
chaos. Many commentators were keen to point out the high
fuel consumption rate of his Jaguar, though others regarded
this as a cheap shot in a time of crisis. Some health authorities
cancelled non-essential operations to reduce ambulance movement.
Later in the day Blair held meetings with the UK chairmen
of the oil companies and on the evening news announced that
measures were being taken to clear the blockades and that
the "situation would begin to return
to normal tomorrow." Blair and John Prescott, the Deputy
Prime Minister and Minister for Transport, said that the Government
would not be bounced into a "rash decision" on fuel
tax because of the protestors.
Now that the safety of the lorry drivers was guaranteed by
a preponderance of police numbers at the refineries and depots,
and noting a shift in public opinion that had earlier been
firmly behind the backers, the blockades dissipated rapidly
on Wednesday morning. The protestors said that they were giving
the Government sixty days to do act on the issue or they would
protest further.
In November, just prior to the sixty day deadline, there was
some further panic-buying reported in East Kilbride and Glasgow.
In fact such buying turned out not to be necessary; although
truckers slow-moving protestors along motorways converging
on London over the 13th and 14th of November, the renewed protest
did not gather much support. Chancellor Gordon Brown's had
announced in his pre-Budget report published the week beforehand
that fuel duty was to be frozen for two years, perhaps eroding
some of the support base for the strikes. By Christmas extra
production by OPEC members had brought the price of crude oil
down, which in turn led to petrol price reductions.
A report published by the Department for Transport said that
at the protest's peak, 14th September, motorway traffic was
40% below normal levels and non-motorway traffic 25% below.
The protests were organised by Richard Haddock, David Handley
and Brynle Williams. Williams later became a member of the
Welsh Assembly for the Conservative party. In May 2004, with
crude oil and petrol prices edging ahead of their September
2000 levels, fuel prices again hit the public agenda, with
some suggesting further protests may be imminent.
By March 2005, fuel prices had risen
far above those that triggered the 2000 fuel protest without
any further disruption, to an average of more than £0.84
GBP per litre.
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If
they want to fight dirty then you have two choices:
1. Lie
down and take it.
2. Fight
them on their terms.
It's
up to you!!!
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