VAT Cut

[Yoshi]

Well petrol went down to 88.9ppl before the 1st of December, so why was another couple of pence not knocked off it for the VAT cut??  I mean 2 1/2p in every pound would have made it about 86 -87ppl??

I know diesel is coming down, but thats more due to the price war than the drop in VAT!

[sv130]

 Didn,t they say something about 2p fuel duty going back on at the same time as the vat cut?

 Gaz

[crazymac]

Didn,t they say something about 2p fuel duty going back on at the same time as the vat cut?

 Gaz

Yes thats right, give with one take with the other!!

[Yoshi]

Doh! i must have missed that bit!!

So basically they arent making us better off at all!

[mike142sl]

Dan,

Don't forget that the 2.5% reduction is from the cost of the fuel+duty+delivery/retailer not what you pay per litre.

I mean if you pay £1 for a litre of fuel that includes VAT so the actual cost of the fuel, inc duty etc was 85.1p so the new cost with 15% vat would be 97.9p i.e. only 2p less.

Remember the Fuel is only about 32% of the price, The retailer/delivery accounts for 9% and then the Gov't tax it twice with 44% Duty followed by VAT on the lot at 15%.

So if you are paying 88.9ppl that is:
Duty 39.1p
Fuel 28.5p
Retailer 8p
VAT 13.3p

When the price of fuel goes up and down its that element that moves so with Duty going up the cost of fuel must have dropped quite a bit for the overall cost to drop.

I think?