59p of that 129p is fuel duty, i think around 20p is VAT (the real scandal is i believe VAT is charged on top of the duty, they use the duty as an inclusive price and take the 20% from the total, which should be illegal), take away delivery and retailer etc its around 45p for a litre of petrol in reality. The skewed way of doing the VAT means when duty goes up, the VAT actually goes up as well in turn (as its 20% of both the duty and product price lumped together).
So lets say if they took product price of 45p (roughly), delivery/retailer of around 5p, and added 20% that'd be 60p a litre with VAT, theres even room there to double that price with duty and it still wouldnt be what you actually paid today, you'd think if you lumped 40p duty on it that'd make it £1 a litre, well not so, because 40p duty would mean the VAT would be taken out of a 90p sum (retail, product, duty) would actually mean it'd rise to 108p, VAT charged on tax, interesting, i thought VAT only applied to luxury items, goods and services etc, not to tax. So when they put their duty up by 1p they are in turn raking in extra via VAT for having done so.
This is also how the Governments fuel duty cut meant nothing as they upped the VAT by three times that amount in January.
However i'll also say a cut to 99p will mean very little for most people, obviously it'd look alot better and in my view would be a reasonable price for the product, but the maths dont suggest it'd be a revolution, i got 10p off a litre today at Sainsbury, saved £1.50, not really retirement fund is it, it needs to be such a drastic cut to really make a difference that it'll never happen. Where it will help though is haulage firms, one not far from me was on the local news a few days ago, they have a £50million annual diesel bill, the fact is though only around £17million of that was spent on Diesel, the rest all went to the Government in tax so you can see why the haulage firms do nothing but b**** about it, and with good reason. Dont forget this is a trade which affects all of us.
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