Question for Europeans
 

Scott en Aztlán wrote:
> Here in the US the top story recently has been the large upward spike
> in gasoline prices. Some have predicted that gasoline will top
> $5/gallon by next year, up from $2.50/gallon today. Since you folks in
> Europe have had $5/gallon gas for years (thanks to high taxes), what's
> happening to gas prices over there in Europe? Are they going to hit
> $10/gallon soon? Is the price of gas the top story on your local TV
> news?

Remember, they use Euros, and the Euro buys more dollars nowadays,
and that helps counteract the increase in US $ oil prices.

"Scott en Aztlán" > wrote in message
...
> Here in the US the top story recently has been the large upward spike
> in gasoline prices. Some have predicted that gasoline will top
> $5/gallon by next year, up from $2.50/gallon today. Since you folks in
> Europe have had $5/gallon gas for years (thanks to high taxes), what's
> happening to gas prices over there in Europe? Are they going to hit
> $10/gallon soon? Is the price of gas the top story on your local TV
> news?

Current price in UK is around US$6.16 / US gallon

They are going up however have stopped going up quite recently. The general
thought is that they have stablised now. However the chancellor has hinted
further tax will be applied to petrol and diesel in the September budget.

Of the $6.16 per gallon, approx $4.26 is tax.

"Scott en Aztlán" > wrote


Is the price of gas the top story on your local TV
> news?






The price of fuel is already causing social unrest, see
http://news.bbc.co.uk/1/hi/uk_politi...nd/4483881.stm



Vince

Truck Driving In Russia- www.coventon.co.uk

On Mon, 09 May 2005 06:46:08 -0700, Scott en Aztlán wrote:

> Here in the US the top story recently has been the large upward spike
> in gasoline prices. Some have predicted that gasoline will top
> $5/gallon by next year, up from $2.50/gallon today. Since you folks in
> Europe have had $5/gallon gas for years (thanks to high taxes), what's
> happening to gas prices over there in Europe? Are they going to hit
> $10/gallon soon? Is the price of gas the top story on your local TV
> news?



Sorry to get political, but it's great the return you get when you invade
a country for it's oil innit? No, sorry, not the oil. For the freedom of
the people, obviously. Ahem.

"Scott en Aztlán" > wrote in message
...
> Here in the US the top story recently has been the large upward spike
> in gasoline prices. Some have predicted that gasoline will top
> $5/gallon by next year, up from $2.50/gallon today. Since you folks in
> Europe have had $5/gallon gas for years (thanks to high taxes), what's
> happening to gas prices over there in Europe? Are they going to hit
> $10/gallon soon? Is the price of gas the top story on your local TV
> news?
>

Petroleum is taxed at a fixed rate in the UK so our prices rise proportionally
less than in the USA, some how the government attempts to make out that we are
better off because of it.

Lets say you pay $2.53 a gallon made up of $2 for the fuel 0.30 for direct tax
and 0.12 10% sales tax, if the direct fuel cost doubles to $4 the 30 cents fuel
tax stays the same and the 10% sales tax goes up to $0.43 leaving you paying
$4.73.

Now if we are paying $5.05 a gallon with $2 for the fuel $2.30 direct tax and
0.75c for 17.5% sales tax and the cost of fuel doubles to $4 then the $2.30
stays the same we pay $740 as the 17.5% tax is now $1.10.

So your price has increased by 87% ours by just 46%.

In reality our tax burden is much higher than that but this is just a
demonstration.

"Scott en Aztlán" wrote

> Since you folks in
> Europe have had $5/gallon gas for years (thanks to high taxes), what's
> happening to gas prices over there in Europe? Are they going to hit
> $10/gallon soon?

As our taxes are already high, the increase in gas prices doesn't
impress us much. The percentage of the increase is low.

We don't expect $10/gallon for the next months.
But in several years...

Thomas

> Since you folks in Europe have had $5/gallon gas for years
> (thanks to high taxes), what's happening to gas prices over
> there in Europe? Are they going to hit $10/gallon soon?

Because the prices are mostly tax, and this is largely set in absolute
terms, rather than a percentage, we are insulated from much of the
fluctuation in the price of the base product.

People grumble about the price, but deep down know that petroleum use is bad
due to climate change, so the grumbling is not as loud as it might be.

Christian.

gazzafield wrote:


>
> Sorry to get political, but it's great the return you get when you invade
> a country for it's oil innit? No, sorry, not the oil. For the freedom of
> the people, obviously. Ahem.
>

No, it wasnt for oil, and not for the 'freedom' of the Iraqis.
You may want to familiarize yourself with the US Neoconservative
agenda.

This is a good overview:

http://www.haaretzdaily.com/hasen/pa...?itemNo=280279

"Christian McArdle" > wrote in message
t...
>> Since you folks in Europe have had $5/gallon gas for years
>> (thanks to high taxes), what's happening to gas prices over
>> there in Europe? Are they going to hit $10/gallon soon?
>
> Because the prices are mostly tax, and this is largely set in absolute
> terms, rather than a percentage, we are insulated from much of the
> fluctuation in the price of the base product.
>
> People grumble about the price, but deep down know that petroleum use is
> bad
> due to climate change, so the grumbling is not as loud as it might be.

Part of it is absolute, part of it is a percentage (VAT).

"Christian McArdle" > wrote in message
t...
>> Since you folks in Europe have had $5/gallon gas for years
>> (thanks to high taxes), what's happening to gas prices over
>> there in Europe? Are they going to hit $10/gallon soon?
>
> Because the prices are mostly tax, and this is largely set in absolute
> terms, rather than a percentage, we are insulated from much of the
> fluctuation in the price of the base product.
>
> People grumble about the price, but deep down know that petroleum use is bad
> due to climate change, so the grumbling is not as loud as it might be.

We also know using it is vital for the econimy and it's not a luxery item. We
wouldn't complain about this level of tax on diamonds or gold as we don't need
to use them to get to work in the mornings or home after it. As almost everyone
used it to some extent to get to or from work the knock on costs filter through
to every buisness that's not even including the costs on goods transport and
food.