55 comments and no-one has noticed...
that the price of oil is at an all time high of £55/barrel.
So what? Tax is 80% of the price. Err, not any more... it's below 70% and falling.
Now just pretend we hadn't had 70% tax the last 20 years. We could all have afforded to drive US style V8s that get 15mpg. Then in the years since 2004 the price of petrol would have gone up 300% and we would really have something to gripe about. As it is, it has gone up less than 50%.
So, all that tax has saved us a nasty shock these last few years. So am I in favour of the extra 2p /litre tax? Not really. It's done its job. We have passed peak oil. From here on in the price of oil is going to double every two years until the global economy collapses. Each doubling in price is going to hurt us much more, as the taxation buffer is eroded. The only good news is that it is hurting those damn Yankees with their 50 mile commutes in V8 SUVs and wars for oil even more than it is hurting us.