History shows that petrol in this country has, allowing for inflation, kept normally within a fairly narrow band price wise. But today, at an average price of around £1.20 a litre, the cost is about 40% higher than the long-term trend.
There have been two periods in the past 108 years when prices have been so high. In the mid to late 50s, shortly after a post-war period of petrol rationing ended, they were as high as today. And during the First War they were the equivalent of about £1.90 litre. Of course as only the aristocracy could afford cars at that time, it wasn’t a huge issue for the likes of you and me.
Since the end of the 90s, crude oil has doubled in price, making this the main cause for fuel increases for the past decade. However, ten years ago, a government report found that, between 1990 and 1999, the price of North Sea oil fell 30%, yet fuel prices rose about
30%, and this was partly attributed to taxation. Today, 75p of the £1.20 that we pay for unleaded goes to the London exchequer.So it's a combination of both plus greed of the oil producers that has caused our rapidly growing prices. This year we've had all of these. On 1 January 1 VAT went back up to 17.5%, which added a couple of pence to the cost of petrol. An increase to fuel duty and a scrapped subsidy has added about 2p extra from the beginning of April (with more due to come later in the year). Plus, according to the AA, wholesale prices went up 17% this year so far, which has put another 5p on top.
Petrol here is probably the most expensive in the world. I wonder if anyone reading this has noticed any country where it costs more...
As we couldn’t let a whole week go by without a wee bit of Petula, I thought that it might be an idea to look at how much petrol cost back in the late 70s.... well in this ad for a Chrysler Sunbeam, it’s 30p a gallon... about 7p a litre......
Oh happy days....
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PS: Pic for Brownlie (nice legs, huh?). Promise I'll do Peggy Lee soon!
