What's The Point In Cutting Fuel Duty?

[ToraToraTora]

https://www.dailymail.co.uk/news/article-10633787/Rishi-Sunak-set-CUT-tax-fuel-cost-living-fears-Spring-Statement.html
any cut will just get swallowed up by the retailers and the treasury will get less duty and seek to recoup that elsewhere. End result retailers line their pockets and the public pay the same or more. Leave it alone and introduce a rebate scheme for hauliers etc.

[douglas9401]

You should restate your views on affordable motoring, just in case people don't know your "thoughts" or us poor folk having cars.

[Gromit]

Because he doesn’t care.
He knows any reduction in fuel duty will not make it to the motorist. He wants you to drive less, and wants to reduce our imports of fuel.
He is only announcing this, and some other tiddles, to be seen to be doing something, when really it is too little, too late.

[bednobs]

I agree with ttt. Unless it's a really substantial cut it won't even be felt or seen by the ordinary driver

[youngmafbog]

There is no point TTT.

Market forces are what will drive it. Less people buy it (around the world) the more becomes available and the price drops.

If he really wanted to do something about fuel poverty he can start by dumping net zero, start up with NS exploration and fracking.

And yes, it wont come onboard immediately but just the news of more protentional oil/fuel will affect the trading market.

[youngmafbog]

As a positive note the roads will become more usable for those of us that really need to travel.

Perhaps scum scoops will become more affordable for the masses. After all they want to do their bit for the net zero and lest face it the only ones to give up anything for net zero are the poor.

[THECORBYLOON]

"Leave it alone and introduce a rebate scheme for hauliers etc."

What guarantee is there that saving would be passed on to consumers?

[youngmafbog]

There isnt and there may not be a saving. But at least the hauliers wont go broke which would be a major problem.

[Gromit]

Fracking is unpopular with the public, and uneconomical to extract and this Government are not going to lift the ban.
In the UK, the product of fracking is gas. That is not going to help reduce the price of petrol and diesel.

[Deskdiary]

A 5p saving per litre!

In the real world this is not this going to make a difference to people.

Saving £2 (say) on a tankful of fuel, when NI is increasing by 1.25%, when gas and electricity is through the roof, and when inflation is increasing, is pissing in the wind and insulting.

[youngmafbog]

//Fracking is unpopular with the public//
With some of the public and a public now faced with eat or heat might focus minds away from the woolly green rubbish.

//and uneconomical to extract//

Not at current prices it isnt, but hey why let facts get in the way ?

// and this Government are not going to lift the ban.//

No, but Johnson can be removed and if he keeps going with net zero he will be

//In the UK, the product of fracking is gas. That is not going to help reduce the price of petrol and diesel.//

No, but its a general fuel issue. Or havnt you noticed your now putting more 50p in your bedsit meter?

[goodgoalie]

The price of a barrel of oil has recently dropped from $140 to $100 - has the price of petrol or diesel also fallen? Not a chance!

[Gromit]

Over 100 US Fracking Companies have gone bankrupt.
The more oil and gas extracted creates a glut in supply and the price drops. When that happens, it costs more to frack the the fuel than it can be sold for.

A 15 minute explainer video from Bloomberg.

[youngmafbog]

//The more oil and gas extracted creates a glut in supply and the price drops. //

Correct, except now we are looking to exclude Russian gas there is a big hole. In addition the Chinese are looking to buy loads more which is what was causing the issue prior to the Russia/Ukrainian war.

[Gromit]

Fracking is only economical if the price per barrel is high forever. It won’t always be.
Meanwhile, Johnson and Biden have already begun work on finding alternatives to Russian energy supply. They have been begging Saudi Arabia and UAE to up production (which is currently capped). Also Iran and Venezuela embargoes on oil will be lifted.

[Gromit]

Saudi Arabia and Russia worked together to lower production to drive the price up. But it was not a happy alliance. If the west promise to stop buying Russian fuel and if Saudi promise to up production and fill the gap in supply, then Russia will be bankrupted, the Sheiks will get richer, and the price we pay will fall.

[youngmafbog]

A lot of ifs three Gromit. And Johnson was told to 'go away' by the Saudis when he went cap in hand.

And anyway going to the Saudi's and Venezuelan's is just moving the problem. We need to be self sufficient and that in itself has a value.

[Gromit]

Ymb,
The answer is not fracking which is dirty, expensive and uneconomical. We need to less wasteful with our energy, and we need to generate more renewables.

Ending grants for wind, solar and insulation initiatives was incredibly short sighted.

[youngmafbog]

Gromit
//We need to less wasteful with our energy//
What, like stop shipping gas and fuel around the world in dirty polluting tankers you mean? If so I agree.

// and we need to generate more renewables../

Eventually yes. At the moment, unless you mean hydro, the tech is not there yet so we need to wean ourselves off oil. The expected time span is too short.

[youngmafbog]

//Ending grants for wind, solar and insulation initiatives was incredibly short sighted.//

No, when at the bottom of a hole stop digging. We are trying to push the advances too quick, changes in tech take time. If you cant make it work without massive propping up you need to stop and re-evaluate.

Perhaps we should subsidise fracking then it will be more viable for you?