in message <[email hidden]>, flembo
(') said:
"Mark Hewitt" <[email hidden]> wrote in
message news:[email hidden]...
Quoted message said:
"Tim Woodall" <[email hidden]> wrote in message
news:[email hidden]...
Quoted message said:
Assuming the figures I saw the other day on the BBC site are correct
on a 97p litre of fuel there is 47p of tax.
You assume wrongly, there is 47.1p per litre of duty on petrol and
diesel, then you add the VAT on top of that.
Quoted message said:So that means 50p for the fuel, 32.5p duty and then 14.5p VAT
Nope.
Quoted message said:At 77p/litre (IIRC the fuel protests were at about 80p litre) then
we
get
Quoted message said:Quoted message said:33p fuel, 32.5p duty and 11.5p VAT.
Nope.
Let me elaborate on that 'Nope', if I may. I hope I've understood you
correctly.
Retail fuel costs in the UK are not proportional to crude oil prices.
If they were, the cost of a litre of petrol today (based on this time
two years ago) would be nearer to 135 pence than 95 pence. The retail
price of fuel is proportional to refined petroleum product + the
attendant duty and other taxes. In the UK, in the case of petrol, it
leaves the refinery at around
$2.25/US Gallon and leaves the pumps at around $6.80/ US Gallon. This
is where the 62% or 61 pence markup that has been bandied about over
the last few days comes from. If petrol was given away free to
retailers at the refinery gate, it would cost 55 pence a litre at the
pump before they could make a profit (ie fuel duty + VAT) . The 61
pence that's been quoted is because both fuel and duty are taxed, ie
(33+47)*1.175 =94, 94-33 =61, et voila! I think that's what you were
saying.
[scythe]
Look, let's bring this down to something every cyclist can understand.
I'm going to cycle across a desert. The next well is 200 miles away. I
have one camelback, holding 3 litres of water. If I'm /very/ careful, my
water will last. After a while I meet another cyclist crossing the
desert, and he hasn't brought a camelback. So I give him a drink out of
mine. We ride on together, and meet more and more cyclists. Soon we're
passing the camelback from hand to hand as fast as we can go, just so
everyone can get a drink. 'I know', says one bright spark by the name of
Gordon, 'lets put another drinking tube into the camelback so that we
can suck the water out faster'. Exercise for the advanced reader: who
gets to the next well alive?
OK, OK, so that's bad enough. But in the real world there _is_ no next
well, or if there is we don't know of it yet. Conserve energy as much as
we like, it may still run out before we find an abundant alternative
source. So what does the rational person do about this situation?
Increase or decrease consumption?
The problem isn't that fuel is too expensive in Britain. It isn't. It's
still way too cheap. If it were much more expensive, people would start
seriously seeking ways of reducing their consumption.
Last night on the BBC, a 'hill farmer' (who not only does not pay tax on
his fuel, but actually has his income hugely subsidised by you and me
out of /our/ taxes) was shown driving an enormous, apparently brand new
four wheel drive tractor to blockade a petrol refinery in Newcastle. The
fuel costs of this enormous beast, he complained, were too much for his
business. So the solutions is...?
/If/ he is, as stated, a hill farmer... I grew up on a hill farm. It had
tractors - grey Fergussons of 28 horse power which could run all day on
less fuel than his penis extension burns in an hour[1]. But most of the
time, the tractors stayed in their sheds. To go out and look or feed the
sheep, there was a mini pickup (although most of the shepherds on
neighbouring farms just walked). Sure, the hay harvest needed more folk
than the farm employed permanently, but that's what school holidays were
for. But last night's fuel protester wasn't thinking of selling his
monstrous pride and joy. Not he. He wasn't thinking of living within his
means, of using equipment appropriate to his budget or his needs. No,
no, no. Perish the very thought.
And though his hypocrisy was extreme, it's only more obvious than that of
the person who uses a sports-car or an SUV for suburban commuting and
shopping journeys, and then complains about the cost of fuel.
[1] Massey Fergusson's current big 4x4 - the 8400 - burns 35 litres of
diesel per hour - according to the manufacturer's brochure - at full
chat. No wonder he can't afford to run it!
--
[email hidden] (Simon Brooke) http://www.jasmine.org.uk/~simon/
;; Diplomacy, American: see Intelligence, Military