Rising Petrol prices a good thing.

[Vladd67]

Brown: Rising price of petrol could BENEFIT motorists | Vladd’s view of the World
Did he really think this? If so what planet is this man living on. How out of touch are these politicians?

[Ursa major]

Necessity often leads to the development of new (and, possibly, beneficial) technology. I doubt whether it'll be seen that way until well after the next UK election, though.


What I can foresee is that with vehicles using less oil, the low tax on hybrid vehicles (or whatever) won't last for long: the Chancellor has to get his money from somewhere.

[Vladd67]

Yes look how the price of liquid petroleum gas fuel has crept up.
How long before a tax is slapped on used cooking oil.

[thaddeus6th]

Brown's completely bonkers. Yesterday, prior to tucking into an 8 course feast, he told us that the horrendous waste of £8 per week by families throwing out food was to blame for food inflation. Bah.

The most frightening thing is that it could get worse. Imagine PM Balls, or Harman. *shudders*

[Ursa major]

I rather liked this Steve Bell cartoon from today's Guardian (pre-"expensive-oil-is-good-for-you"):

Steve Bell: Gordon Brown's call for the west to waste less food | Politics | guardian.co.uk

[Lenny]

National Bedtime. Ah, if only.

As for "speeding up the development of hybrids"... BAH! Ed Balls to hybrids - put the money into research for things like hydrogen fuel cells.

[Dave]

Higher oil prices do spur the development of more efficient engines and reduced carbon emission technology. That is the point behind slowly raising duty and taxes on fuel (apart from the obvious extra revenue for the chancellor.) However, you need to slowly raise it over a long period, not suddenly hike it up 50%. Gordon Brown has lost his mind since he went to the G8 Summit.

[Wiglaf]

Here, it might have some long term benefit in that sense. Regular small increases in the gas tax starting after price stabilization would be a good idea here. This would be especially true if diesel was not affected and the money offset tax incentives for investment in alternatives. However, I have heard that in the UK you all pay the equivalent of $9 per gallon which is about double what we pay. Honestly I don't know how you people can afford to eat and live indoors. I think that in your case the short term effects are more than harmful enough to outweight any long term benefit and that your prices were already more than high enough to stimulate efforts for conservation.

[Wiglaf]

Originally Posted by Dave

Higher oil prices do spur the development of more efficient engines and reduced carbon emission technology. That is the point behind slowly raising duty and taxes on fuel (apart from the obvious extra revenue for the chancellor.) However, you need to slowly raise it over a long period, not suddenly hike it up 50%. Gordon Brown has lost his mind since he went to the G8 Summit.

Dave's idea is what I am suggesting for the US; you all pay enough that I would quit my job for a minimum wage fastfood job within walking distance is we paid that here.

[Manarion]

Now that's just not right. Dave does sound good there, but like he said, you don't toss it up a dollar each month.


How is raising it that high that quickly good for the average motorist? Especially those with massive RVs and SUVs......

[Wiglaf]

Originally Posted by Manarion

Now that's just not right. Dave does sound good there, but like he said, you don't toss it up a dollar each month.


How is raising it that high that quickly good for the average motorist? Especially those with massive RVs and SUVs......

Their tax rate is nuts!
For us, I was thinking of adding an 8-10 cent yearly increase to our current 18 cent per gallon federal tax (after state taxes, we might pay 30-50 cents?). My plan would increase cost an additional 2% per year equal to our goal for the rate of inflation. Ideally the pre-tax cost would also go up at the standard 2% so that gas prices would increase at 4% or double the rate of inflation for ten years increasing a total of $1.80/gal rather than only $0.90. The federal tax rate would then be arround $1.08 per gal ($0.18 + $0.90). $6.00/gal is still only 2/3 what they pay now in the UK and the majority of Americans would be making 30% more as without increased government regulation wages rise at a rate slightly higher than the rate of price increases.

[Vladd67]

Not only do we pay tax on petrol and diesel but VAT (Value added Tax) is then added at 17.5% so we are paying a tax on a tax.

[Ursa major]

And then there is this: a "green" tax that you get to pay years after you made up your mind what to buy:

BBC NEWS | Politics | Road tax increase 'will hit 9m'

BBC NEWS | Special Reports | 629 | 629 | New car tax rates for 2009

[thaddeus6th]

It's not just green, it's four dimensional!

Perhaps Brown's been watching too much Dr Who, and has forgotten that for most people time only moves in one direction and the past can't be changed.

[Vladd67]

And again
Vladd's view of the World: High petrol prices are good for us, says Cabinet minister