Petrol Prices Fuelling The Pressure On Osborne

Osbourne

First Posted: 15/11/11 22:35 GMT Updated: 16/11/11 08:18 GMT   PA

Chancellor George Osborne has come under pressure from the Commons to hold down fuel prices.

MPs called on the Government to scrap fuel duty rises planned for next year and backed a motion calling for a new price stabilisation mechanism.

More than 100 MPs - including 83 Tories and five Liberal Democrats - had signed the motion in advance.

It was debated in the Commons after an e-petition calling for action on soaring fuel prices attracted more than 100,000 signatures.

The motion - passed by MPs without a vote - comes ahead of this month's Autumn Statement when Mr Osborne will outline the state of the economy and respond to the Office for Budget Responsibility's latest forecasts.

It has been reported that ministers are reconsidering a 3p duty hike pencilled in for January.

Mr Cameron's official spokesman said any change in tax policy would be announced in the Budget, but stressed: "We recognise as a Government that motoring is an essential part of everyday life for many families and fuel is a significant cost for those families."

Treasury minister David Gauke said fuel duty rises could only be avoided by finding money from other areas.

Mr Gauke told the BBC: "Of course we will listen to these concerns, but there isn't an easy answer to this, there isn't some great pot of money.

"We are going to have to take difficult decisions to get the deficit down, but within that we have shown sensitivity to the needs of motorists."

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Chancellor George Osborne has come under pressure from the Commons to hold down fuel prices. MPs called on the Government to scrap fuel duty rises planned for next year and backed a motion calling ...
Chancellor George Osborne has come under pressure from the Commons to hold down fuel prices. MPs called on the Government to scrap fuel duty rises planned for next year and backed a motion calling ...
 
 
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04:17 PM on 11/16/2011
QUOTE: Treasury minister David Gauke said fuel duty rises could only be avoided by finding money from other areas. UNQUOTE

May I suggest stopping or slashing so called "Overseas Aid" and quickly turfing out ILLEGAL immigrants, this should save a billion or two for a start????

MPs and politicians, do they really live in the "real world"?
03:33 PM on 11/16/2011
I am in the USA right now, Tampa, Florida where petrol is £2 a gallon... or 50 pence a litre.

When is the price of petrol going to come down there to balance the price of crude? We should only be paying £1.10 a litre max. so why are the oil companies keeping the price artificially high? You can guarantee that if crude does go up they will immediately start raising prices.
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rabidrightwatch
Green lefty & active environmentalist
03:56 PM on 11/16/2011
oil companies make, on average, 4p/litre profit on petrol and diesel, so the answer doesn't lie there...

Every nation has its own taxation policies.
In the UK, we tend to have consumer taxes (the more you use, the more you pay), whereas in mainland Europe, the emphasis is on direct taxation (income tax) so fuel is generally cheaper - but you pay either way.

Your Tampa FL price will be in US gallons which is very different to an imperial gallon - there are 3.75 litres to the US gallon, so your litre price is more like 65p/litre; still nice and cheap, though, I take your point...

The US has traditionally had very low road fuel prices - don't ask me why - but almost everywhere else in the Western World, you will find that government taxation (fuel duty) makes up around 70% of the pump price.
Oil company profit - around 4p/litre
Filling station owner/lessee profit - around 4p/litre

The only way pump prices will reduce is for Government to reduce fuel duty - don't hold your breath waiting for that, though...
02:18 PM on 11/16/2011
Mr Osborne will outline the state of the economy...........Here is a small preview of the budget forecast:- We the rich are still doing OK you the Poor are not paying enough so the economy is still fuked.
Any reduction in income from reducing the fuel tax to maintain prices at the pump of a maximum of £1.00 a litre would be easily covered by one of a few things.
#1 scrap Trident
#2 Get out of the corruption of Europe.
Tax the greedy b4stards that started this sh1te
02:54 PM on 11/16/2011
That is spot on Kevin.Unfortunately as it's what the uk public want,it won't happen ,Here's an idea.As a thankyou for the billions of pounds of uk taxpayers hard earned taxes being spent on destroying Libyan cities why not ask for a few billion barrels of oil in return? Or should we be sending the bill to America?
12:50 PM on 11/16/2011
I'm not too sure about this price stabilisation mechanism. Can we always imagine the price of Oil going up or is there a real chance that it could come down? The reason I ask is because as I understand it with a stabiliser the more the Oil price goes up the less tax the government takes and the more Oil goes down the more they take, hence keeping the price at the pumps the same whatever happens. Should the Oil price slump, (which I believe could be a possibility at some point), our beloved government will make a small fortune and the motorist won't benefit at all. I'm sure that the government will be monitoring the Oil situation very closely so when they do decide to introduce this you can bet Oil prices will be on a long term down.
12:38 PM on 11/16/2011
Its not holding the price it should be about reducing it
12:11 PM on 11/16/2011
That pot of money he is talking about is called the public!
12:10 PM on 11/16/2011
Pressure on George Osborne eh ?. I have come to the conclusion that the only pressure that today's well heeled professional politicians will understand needs to be delivered at about two and a quarter tons per square inch at the breech.
12:08 PM on 11/16/2011
THIS IS JUST ANOTHER SCAM BY CAMERON AND THE COALITION. ALL THEY WILL DO IS SAY NO PRICE INCREASE NEXT YEAR. BUT THEY WILL NOT REDUCE THE AMOUNT THEY TAKE FOR FUEL DUTY. SO PRICES WILL STAY AS THEY ARE UNAFORDABLE FOR US ALL EXCEPT FOR HIS UPPER CLASS PALLS
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HUFFPOST SUPER USER
paulie boy
Justice for all..not the few
11:43 AM on 11/16/2011
Labour scrapped the automatic accumulator on petrol duty, that the Tories had before. It seems that they are determined to persecute the motorist one way or another. Where I live a car is essential not a luxury, we have very few buses and if you have to rely on public transport, you would never be able to get to any job on time. My wife works odd hours, as and when they need her, how could she rely on public transport and there are no other job vacancies locally.
10:52 AM on 11/16/2011
so Mr gauke say's that there is not a big pot of money he's having a laugh isn't he there is a pot of money when it comes to MP's expenses or when they vote themselves a rise
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rabidrightwatch
Green lefty & active environmentalist
10:37 AM on 11/16/2011
If the Government figures are correct, 1p fuel duty represents £500m revenue and the proposed increase therefore represents £1.5bn revenue.
Bearing in mind that approximately 70% of fuel cost is tax (90p per litre), then the revenue generated from fuel tax equates to £45bn per annum.
This revenue is gathered in order to provide various services we all need and rightly expect - fuel tax revenue, for instance, used in its entirety, would fund 70% of the entire NHS budget.
Conversely, it funds one-fifth of Trident replacement costs, 25 Eurofighters, 2 aircraft carriers or funds - to use a recent example - three similar military intervention exercises such as we saw in Libya... well spent..??

From my standpoint, we simply can't afford to lose fuel duty revenue; it funds many things... so for those who are clammering for its reduction, please nominate a hospital or school in your region that will receive less revenue so you can continue to drive your car, your family van or your chelsea tractor.. answers on a postcard please; the money's got to come from somewhere, you know...
12:58 PM on 11/16/2011
I wonder if Osbourn would like to try and get some of the taxes that companies and the super rich seem to be able to avoid by having their companies based over seas for tax purposes, you know like Dave's friend who has his company in his wife's name and she lives in Monaco......

That would go a long way towards cdovering some of the short fall......
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rabidrightwatch
Green lefty & active environmentalist
01:55 PM on 11/16/2011
...I'm sure you're right, tackling tax evasion and avoidance could trawl in substantial amounts of money... but is there anyone left (after all those redundancies announced recently) in HMRC to actual do it..??
10:02 AM on 11/16/2011
TO ME A CAR IS A LUXURY ALSO IF YOU CAN AFFORD A CAR YOU SHOULD BE ABLE TO AFFORD THE ROADTAX,INSURANCE,PETROL, ETC,SO STOP YOUR BLOODY MOANING AND GET ON WITH LIFE OR GET A SMALLER CAR YOU CAR OWNERS MAKE ME SICK ALWAYS MOANING.
10:53 AM on 11/16/2011
For some people a car is an essential. I would dearly love to be able to use my legs to get to public transport but as a disabled person that's not an option. So I'm sorry that I make you sick however I think it's perhaps you're own selfish views that are doing so perhaps if you think of others before you make such comments you'd feel better. To many many people the car is an essential not a luxury
01:02 PM on 11/16/2011
When I lived in London I didn't need a car but living 6 miles outside a small town in the Midlands it's a different story..........2 buses a day means a car is needed for work, for shopping, visits to the doctor, hospital and to elderly relatives.......
08:50 AM on 11/16/2011
The fact of the matter is that not one of our MP's care one jot about Joe Public and all they think about is themselves. Labour have spent 13 years proving it beyone any doubt and the coalition are doing just the same.

If money has to be saved then cut it from the Overseas aid budget. Nobody with any intelligence gives to others if they are bankrupt themselves so why are we paying £ millions out to other countries? The bulk of the money is going into the hands and bank accounts of corrupt officials and dictators and not to the folk that really need it. We have to look after ourselves first and others second.

The big problem now is who should govern us. All of our parties have proven that they are incapable.
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meddleman
08:40 AM on 11/16/2011
If Osborne is to help his friends and relatives by getting rid of the 50p tax rate, continue to give high earners vast government subsidies on their pension contributions and to ensure the current systems allowing the rich to avoid paying taxes are prolonged, then he has to get his money from somewhere. The rich get richer and ordinary people pay ; that is and always has been Tory policy.
HUFFPOST SUPER USER
Dombeyandson
10:02 AM on 11/16/2011
That is why they are called the CONSERVATIVES [to conserve is to preserve a French word for jam] So, if you accept the lack of prinicpals of the Conservative/Preservative/Jam Party you are vorting for the JAM MAKERS. So, Big Dave - still think we're all in this together if so where do I send my bills for you to pay??
08:30 AM on 11/16/2011
Why are we always talking about not putting fuel duty up?
We should be DEMANDING that fuel duty be slashed!
We have our own North Sea Oil but do we benefit in any way from it? .... no, our fuel prices are amongst the highest in Europe.
Recently vast reserves of natural gas have been found in this country, will we benefit from it in reduced fuel costs? .....no!
It will all be creamed-off by the bankers, 'fat cats', cronies and parasites.
HUFFPOST SUPER USER
Dombeyandson
10:08 AM on 11/16/2011
There's more natural gas expelled in Parliament than there is in the North Sea
11:02 AM on 11/16/2011
Don`t know about natural gas but certainly plenty hot air.
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rabidrightwatch
Green lefty & active environmentalist
10:14 AM on 11/16/2011
...actually, the revenue from fuel duty helps to support the NHS and a whold host of infrastructure & welfare provision.. so if fuel duty is reduced, please nominate which social service is to be underfunded as a result...

North Sea revenue, since oil came onstream in 1975, has been largely used to bribe the electorate with tax cuts at election times, so all taxpayers have, in effect, benefitted from oil revenues from the North Sea.
Had successive governments been planning for the future rather than concentrating on being reelected, we'd have used the windfall revenue for infrastructure, social housing and reserves - look at Norway today: they have significantly better social provision, an excellent infrastucture and the highest sovereign wealth fund in the world.

We all pay tax into the exchequor, but have no say in its ultimate use.
I for one would like to scrap Trident and its replacement & divert that money into more pressing and important provision, but that's only my opinion; we all pay for things we don't want
12:16 PM on 11/16/2011
Tax cuts? I think if you look at your wage packet and compare it with even 10 years ago you will find that the percentage that you pay in overall tax is more now than then. Whenever a penny tax has been implemented on what you pay tax on (gross less your allowance) it has been more than matched by an increase in national insurance, which is on all that you earn. The Torys have always attacked the poor, the young, the old, the lower middle and working classes whilst ensuring that those with money, bankers and the MP's expenses pot remains fully topped up.