Tax on diesel/petrol

[moneymakeover]

As the wholesale price of diesel and petrol increase the government tax take increases
The effect is to increase the tax take

So my question is : will the cuts in excise really cost the exchequer hundredd of million? Because the government is already profiting from the increased vat, excise when the wholesale price increased?

I did some calculation using AI and back when the pumps were selling diesel for 170
The government was getting 103
Including carbon tax and Nora

Then when the price increased to say 220, the government was getting 123c

So when they reduced the excise by 20 cent
They were still getting 103 per litre

I'm probably missing lots of details but in a general sense I have a point?
And I don't see it being discussed in the media

By comparison, in United States the federal gasoline tax has remained fixed at 18.4 cents per gallon since October 1, 1993, and 24.4 cents per gallon for diesel. It has not been adjusted for inflation in over 30 years.

 

[Purple]

By comparison, in United States the federal gasoline tax has remained fixed at 18.4 cents per gallon since October 1, 1993, and 24.4 cents per gallon for diesel. It has not been adjusted for inflation in over 30 years.

Fuel prices have always been low in the USA but they are the biggest producer of both oil and gas in the world.
They also have much lower income taxes but much higher wealth taxes. Applies and oranges.

 

[Steven Barrett]

I agree with your point. The government are getting between 60% - 65% of the cost of fuel. As the cost increases, so does their take, so taking a smaller % of a larger cost shouldn't cost them anything.

It also raises the question of what a government is for with regards to business and the economy. My belief is that the government should set the conditions and environment for business to flourish (parameters are required in the guise of regulation) and then get out of the way. By taking so much in tax for fuel, they are hindering the ability of so many businesses to not only flourish but to survive. It is all part of a failing green agenda that Europe has adopted that has seen the cost of energy soar with the lack of provision of alternative greener sources of energy.

By comparison, in United States the federal gasoline tax has remained fixed at 18.4 cents per gallon since October 1, 1993, and 24.4 cents per gallon for diesel. It has not been adjusted for inflation in over 30 years.

A massive country with a very poor public transport system, where people are reliant on their cars. Even the most basic road there are 2-3 lanes. The cost of fuel is a massive political issue. Trump has caused a political headache for himself with the increase in the price of oil. The cheaper the cost of fuel, the happier Americans are when it comes to voting.

 

[Brendan Burgess]

Thanks folks

We have already had to close a thread on this as it became so divisive. It takes up too much time of the moderators.