Fuel prices (again)
I read the following comment by Angus MacNeil MP in the House of Commons last week:
I believe that the EU derogation allows the duty of 50.35p per litre to be varied by up to 3%, and no more.
The maximum gain is therefore 1.51ppl or 1.08% of the pump price; and after taking VAT into account this will jump to 1.77ppl or 1.27% of the pump price. Given that prices have risen by 40% this year, it hardly scratches the surface, and with hauliers in the islands now applying a 5% fuel surcharge on all goods, the impact is clear.
However, the issue of differential pricing for fuel shifted by sea or road is interesting in an academic sense only, as it is only another minor layer of costs that is being added to an already excessive price. (Mr MacNeil's new found knowledge on international oil pricing and the Rotterdam spot market is amusingly intriguing; he clearly has no idea how the market and commodity 'hedging' works.)
Can anyone estimate the volume of petrol delivered to the islands in a year, so we can try to estimate the cost to the Treasury of being 'duty free'?
- The Prime Minister might want to watch "Truth, Lies, Oil and Scotland" on the BBC tonight—a programme about Scotland's oil, which is not even at its peak. But may I give the Prime Minister another truth? My constituents in Lewis, Harris, Uist and Barra are paying the greatest fuel tax in the UK, with fuel priced at £1.40 a litre—about £6.50 a gallon. Will he give some of the £4.4 billion fuel windfall to offset the cost of fuel by 3 per cent. in the Scottish islands—something that he has already agreed to do for areas of rural France?
I believe that the EU derogation allows the duty of 50.35p per litre to be varied by up to 3%, and no more.
The maximum gain is therefore 1.51ppl or 1.08% of the pump price; and after taking VAT into account this will jump to 1.77ppl or 1.27% of the pump price. Given that prices have risen by 40% this year, it hardly scratches the surface, and with hauliers in the islands now applying a 5% fuel surcharge on all goods, the impact is clear.
However, the issue of differential pricing for fuel shifted by sea or road is interesting in an academic sense only, as it is only another minor layer of costs that is being added to an already excessive price. (Mr MacNeil's new found knowledge on international oil pricing and the Rotterdam spot market is amusingly intriguing; he clearly has no idea how the market and commodity 'hedging' works.)
Can anyone estimate the volume of petrol delivered to the islands in a year, so we can try to estimate the cost to the Treasury of being 'duty free'?
8 comments:
Angus ask your Labour pal in Scottish Fuels Depot SY the shadow company for BP.
No, better to ask Boolie at the Stornoway Port Authority- as there is a levy charge on every ton of fuel landed, it will be straight forward to check the published? accounts and a good accountant will be able to do the sums!
I found the dues for 2006- it was £1.320 per ton for oil- diesel , gas oil, or fuel oil back then, bound to have gone up though- lots of fairy lights at amatan house to pay for!
The Prime Minister might want to watch "Truth, Lies, Oil and Scotland" on the BBC tonight—a programme about Scotland's oil, which is not even at its peak..
Perhaps Angus Macneil might want to look at some hard numbers before he makes foolish assertions in the House based on a single one sided BBC documentary.
Production in the North Sea has fallen by nearly 50% since 1999 according to BP, The Energy Information Administration and the Department for Business, Enterprise and Regulatory Reform.
What hope do we have if this is the level of understanding our politicians have of the oil and gas industry?
Just tot up the number of times the Border Heather came to make a delivery in a year...
Didn't Macneil discover massive oil deposits in Barra when he was younger?
Was he not drilling in Orkney in 2005.
Was that not Virgin olive oil he was looking for in Orkney
yeh, sure i can estimate it, 200 litres (sorry, is that pints, gallons or litres?) ls
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