> The oil prices have been steadily dropping for months. At the start of
> Jan, we were still paying 1.19-1.22 here. Then it went as low as
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> According to all the gurus, the price should be around 90 cents at
> most, yet...
>> The oil prices have been steadily dropping for months. At the start of
>> Jan, we were still paying 1.19-1.22 here. Then it went as low as
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>
>That's Just the Duty yea?
LOL. Nah, pump price. Our duty is well above 1/2 of the pump price
once the federal and state governments get through it all. The service
station's profit was around 14 cents on a litre when it was selling
for only 78 cents some years ago. There may have been some changes
since, but i'd think it'll still be close to that percentage-wise.
All in all, we are only whining because we are used to low priced
fuel. Just as the Americans are. We've always had substantially
cheaper fuel than you guys in Europe. Partly dictated by our long
distances i'd say, but probably also because we do produce a large
enough quantity of oil ourselves(though not necessarily for
ourselves).
>I'm currently paying 87.9p/l for diesel so that's about USD$1.71 isn't it?
Last time i've looked, diesel was around A$1.50 or something here in
Oz, when petrol was 1.20-ish. It always amazes me how a byproduct of
refining crude oil into petrol can be sold for more than the bloody
petrol. Maybe it has gold particles, i'll try and fossick a few
litres.. :)
>That aside do we actually pay VAT on the duty? So when "Gordon Blair" put up
>the Duty 1.25p last year it actually went up 1.46p?
Dunno, but i don't think you should be paying VAT on duty. AIUI, the
duty is based on the already calculated VAT(GST for us) inclusive
price and is just tacked on.

Signature
Regards, Frank
Peter James - 30 Jan 2007 10:39 GMT
<snip>
>>That aside do we actually pay VAT on the duty? So when "Gordon Blair" put
>>up
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> duty is based on the already calculated VAT(GST for us) inclusive
> price and is just tacked on.
Yep the duty is vattable. Ole Gordie doesn't miss a trick, including
ensuring that the *cheaper* fuel carries sufficient duty to make it more
expensive to the end user than the *expensive* fuel.