Petrol £1.35

After collecting 100,000 electronic names on a petition on a Downing Street website campaigners had there day in Parliament, but rather than fuel tax being drastically reduced from the current 70p a litre all the backbenches asked the Chancellor to do was:

‘…consider the effect that increased taxes on fuel will have on the economy, examine ways of working with industry to ensure that falls in oil prices are passed on to consumers, to take account of market competitiveness, and to consider the feasibility of a price stabilisation mechanism that would work alongside the fair fuel stabiliser to address fluctuations in the pump price.’

quite simply, there isn’t going to be a tax cut for motorists.

But how bad are things in reality? I remember when a gallon, or 4.5 litres cost around 5 bob or 25p. Imagine that but also imagine that your average wage was just £2,000 a year.  The FT that published the last 100 years of average pay gives today’s annual average at £40,000 [a dream income to most of my friends as was £2k for my parents], anyway with a simple bit of maths [2k is 1/20 of 40k with fuel at about 7p a litre x 20 = £1.40 a litre]. VAT on fuel came in at 10% in 73.

Just three years ago fuel was only £1.10 a litre which was a heady time when income reached a peak when compared to fuel prices yet even with the increased prices we have little to complain about.  Cars are cheaper, they perform better and fuel consumption is up.

If prices appear to be going up it is simply you’re getting older and able to remember when everything was cheap but not remember how little you earnt.

If you don’t believe me here is a more authoritative study.[link]


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