UK Fuel tax Sept00

High fuel taxes in UK are seriously damaging British industry, agriculture, commerce, tourism and rural economies.

The fuel price at the pump is a combination of:-

a)     the price paid to the OPEC producer countries (12p per litre if Oil price is at USD32 per barrel or 7.5p per litre if Oil price is USD20 per barrel)

b)     refining & distribution cost and retailer’s profit

c)     excise duty levied by UK Government

d)     tax on fuel escalator principle levied by UK Government

e)     VAT for which rate is fixed by UK Government

The world Oil price has fluctuated recently (over last 12 months) from USD8 to USD34 per barrel but the price at the pump has remained above 75p throughout this period. Therefore, the UK Government taxes take the lion’s share of the price that consumers pay!

Taxation, including VAT rates, are under the jurisdiction of each Member State. Therefore, the European Parliament has no power to dictate to the UK Government.

Increased oil production by countries such as Iraq  would reduce the world oil price and this would put “pressure” on UK Government as the public would take direct action. However, such a drop in world crude price can only offer a small decrease in UK pump price. The only effective way is to reduce UK Government taxes so that fuel price at the pump is in line with other EU countries like Spain. This would give a substantial boost to the UK economy.

Blair’s Government should cut UK Government taxes on fuel NOW!