Monday, February 6, 2012

Irish Government 'skimming' off Fuel Prices

In July 2008, as you may well remember, the price of a barrel of oil reached an unprecedented price (see table) and we were all shocked. Up to that time we had been paying at least 35c or even 40c less per litre at the pumps than we are today. When the crisis hit in July of 2008 the price at the pumps shot up over-night to c. 1.36 euro and that's 14c or 15c less per litre than you are paying now.
Today, with VAT, Excise Duty and the Carbon Tax (or GPT - Green Party Tax, as I like to call it!) for every 1.50 euro per litre the Irish Government is 'skimming-off' 1.00 euro. (c.66%)
Such a charge (tax) is been borne, I suggest, most unfairly by rural dwellers [42% of the population of this country, according to official OECD statistics] who have little or no choice of different transport modes other than to use a private motor vehicle.
Inevitably fewer and fewer people, especially in rural Ireland, will be in a position to afford their own private motoring and there is the spin-off effect of commodity price increases as transport cost soar.
Indeed we might be fortunate not to be living in other European countries as we are not the dearest - but that does not make it right - when so many of us depend solely on our own mode of transport for social and work purposes. Neither is it feasible for us to move to Venezuala where the price of fuel is c. 0.12 dollars per US gallon (!).
The price of fuel and the cost of road tax should be linked to the Horse Power of a particular vehicle. Delivery and other essential vehicles should be dealt with differently - i.e. a standard rate.
In many areas, the latest technology that is available is not being used effectively in this or other areas of government whether it be in taxation or indeed i the delivery of services.

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