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Petrol Prices

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O L Leigh

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Prices go up. What can we say?

When I started driving back in 1996 petrol was 52p per litre, but then I was earning less than £9k pa. Now it's about 115p per litre but I'm earning more than £36k pa. Our house has probably doubled in value too in the 9 years we've lived here.

We can wring our hands and complain all we want, but in real terms the cost of driving has remained fairly constant. If we take the increases in the cost of other commodities and wages into account and ignore the short-term fluctuations, increases in the cost of fuel have remained remarkably close to the increases in the costs of other things. It may now be more than twice as expensive to fill my car as it was 15 years ago, but then my average weekly shop, energy bill and salary is also more than twice what they were 15 years ago.

O L Leigh
 

mumrar

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In 1997 I got my Conductors job just as we were restructured. So I was on £16k and fuel was around 60p/litre. Now it's double that and my basic is somewhere just south of £24k. One comparison that's worth noting is that in the time my salary has increased by about 50%, the drivers I work with have seen a rise of about 140%, and they haven't given away much more than us in that time. The price of fuel, along with road fund, MOT, servicing etc is the reason I now don't have a car at all. For my small family with just me earning it simply isn't viable. In the XC staff magazine this month is a feature on a driver who lives in the peak district where he enjoys flying his helicopter in his spare time! Different league - but he's worked a lot longer than me, and perhaps of course there are other financial factors I know nothing about. Still, it makes you think.
 

Geezertronic

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D9521

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Down here its due to go up to 1.20 at this rate im going to have to sideline my car because im not paying insurance for something i cant afford to run :/
 

142094

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Perhaps if it goes on for much longer, we'll see a lot more people going by rail?
 

Oswyntail

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I'm with OL here. Petrol prices should be seen in their overall context. I also suspect that, as domestic finances worsen, people are, of course, more closely watching the cost of peripheral activities - and, in most instances, using the car is peripheral. Kids can walk to school (Ha!), I can walk to Tesco, I can cut back on my sports involvement. OK, there are some who need the car, but not as many as claim to. And it becomes embarrassing to stop using the nice shiny thing you (or your employer) forked out a few grand for. This is why the government tried its under-the-counter bail-out of the motor industry with the scrappage scheme last year.
 

142094

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Interesting but not really that useful in comparing real costs without some idea of average earnings and cost of living in each country.

Looking at places like Norway, they have petrol about 20p dearer than us, but of course have higher wages and more taxation.
 

mumrar

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Looking at places like Norway, they have petrol about 20p dearer than us, but of course have higher wages and more taxation.

Well of course. Have you actually checked that's correct? According to worldsalaries.org in 2005 the average income in Norway was over $1000 less than in the UK, so how do you substantiate your comment?
 

starrymarkb

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Discovered how expensive Dutch Petrol is a couple of years ago - plus filling up at Motorway services would also add to the price - worked out at about £1.40 per litre
 

flymo

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Interesting but not really that useful in comparing real costs without some idea of average earnings and cost of living in each country.

Maybe, but the average earnings and cost of living has little if anything to do with the wholesale price of petrol, the wholesale cost of petrol should be the same wherever you are in the world and this is what 'petrol' companies buy. France will buy petrol for the same price Britain will, the same price the US will, the same price as Australia will etc.

Caltex [for example] does not have a "France" stock or a "Britain" stock of fuel. It has a stock of fuel which is bought wholesale and sold wholesale [again] to the various companies that distribute to the end user, i.e. the garage down the road. It is entirely possible, in fact probable, that Shell, BP, Esso etc are all selling petrol that was held in the same tank.
It is how much tax or duty or whatever you call it that is charged in different countries that makes the difference, not the price of the petrol. The UK Government will get away with charging as much as possible for duty on petrol.
 

90019

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Yes, the wholesale price of the oil will be pretty much the same, but the wholesale price of the petrol itself won't, and there are many more factors than just the fuel duty and VAT that push up the prices (like the cost of refining it, location of the petrol station, etc.), although those do add up to the majority of what you're paying for when you buy fuel in the UK (Isn't it at over 70% of what you pay goes to the government? I foget the actual figures, but it's a lot.)
 

devon_metro

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Quite frankly its disgusting, the fact that the government has the cheek to propose adding 3p of fuel duty in 1st April too. Because clearly, they don't have enough fuel duty already :roll:
 

Oswyntail

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Quite frankly its disgusting, the fact that the government has the cheek to propose adding 3p of fuel duty in 1st April too. Because clearly, they don't have enough fuel duty already :roll:
They - we - need the money. Where do you suggest they get it?
 

mumrar

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Yep, it's required to sort out the huge debts caused by those people who are once again getting massive bonuses. At least we're nowhere near as bad as Greece situation, seems like a lot of bull**** that got them in to the Euro may end up being exactly what kicks them out again. One thing a high petrol price does is redefine peoples opinion of when they 'need' to use a car. I've not had one for nearly four months now, and if I finish after 23:15 (that's quite often) it's a 14.5mile cycle home. Despite this, only for the odd photo of a train have I really wished to have a car for convenience. But physically I'm now in much better shape, last night I did a 9 mile walk, just cos it was a nice night. Vive la revolution, ditch your cars etc hahaha. Seriously though, if my son thinks he'll be driven to school he's going to have a shock. I never was, my Mom walked me till old enough, and my son shall do the same.
 

royaloak

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They - we - need the money. Where do you suggest they get it?

Cut some benefits given to the scroungers so they have enough money to live not buy all the latest gizmo's, stop taking in the dregs of Europe (and no I don't mean the ones that come over here to work), cut some of the extra departments invented by the Lie-bore government over the last 12 years, stop inventing well paid "consultancies" for their mates, get out of Europe all together (but that is where our MPs go when they get kicked out of office so unlikely) and if we are really stuck just ask the MPs to put the deficit on expenses :lol:

Will that do for starters

But of course it is easier to hammer the workers isn't it <D
 

D9521

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Yep, it's required to sort out the huge debts caused by those people who are once again getting massive bonuses.

See all people will resort too is filling up less and using the car less often which will result in less and less being payed off.

I think they should include it in tax instead coz then at least its not a constant occurance and more people would drive again with lower petrol prices.
 

me123

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I tend to have environmental tendencies, but there comes a point where it becomes too much. You don't want to price younger people (like me) off the road, because then they won't get any experience.

I blame it on Gordon. He's the idiot who's put us in the worst deficit outwith war.
 

me123

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Cut some benefits...

Don't cut the benefits. Overhaul the system. When you cut the benefits, you're taking more money away from the majority of people that use the money wisely. :roll:
 

royaloak

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I tend to have environmental tendencies, but there comes a point where it becomes too much. You don't want to price younger people (like me) off the road, because then they won't get any experience.

I blame it on Gordon. He's the idiot who's put us in the worst deficit outwith war.

This has got naff all to do with "the environment" and everything to do with rakeing in more money, if this country stopped producing CO2 overnight how much of a global impact do you think it would be? I would say next to nothing, but dont let the spin masters hear it!

Agree with the last bit though ;)
--- old post above --- --- new post below ---
Don't cut the benefits. Overhaul the system. When you cut the benefits, you're taking more money away from the majority of people that use the money wisely. :roll:

Which is why I said "cut SOME" benefits most of the people that say they cant work for one reason or another could if they had too, but being on benefits is now a viable alternative to working and that cannot be right!
 

mumrar

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There are people who need cars, but as I've said, it makes people redefine 'need' when they can't afford to use it as much. I'm saving about £250 every month from having no car, I work shifts (tonight I finish at New St @00:46) and I'm doing more shifts than before, but I don't 'need' a car. It would be more convenient to have a car sometimes, but convenience and an outright need (such as I need water and food) are two entirely different things.
 
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