Monday, August 29, 2005

Fuel Prices

Fuel Prices are on the increase again with the hurricane heading for the USA predicted to bump the cost up again. People are complaining about the huge profits the oil companies are making.

It is worth noting that 4/5ths of the price of a litre of petrol at the pump is tax while the oil companies receive pence from each litre sold. The only way to cut the unfeasibly high cost of fuel (which also causes an increase in the cost of raw materials and the cost of goods) is for the government to cut the stupidly high rate of tax on it. The increased wealth and reduced costs will lead to more spending and the government will make up most, if not all, of the lost revenue through VAT on high street goods.