- Messages
- 19,434
- Location
- Funkytown, USA
We used to buy our fuel in gallons back then. See the price that Lizzie mentioned, in today's decimal money that equates to 30pence. Today a gallon of fuel, diesel or petrol, will cost over six pounds. And here's how they get away with it.
The UK gallon is larger than the US one, our gallon is approximately four and a half litres. So as fuel prices rose, gallons disappeared and were replaced by litres. Now it looks much cheaper. Most people who have never bought fuel in gallons couldn't tell you the difference between a gallon and a litre, the ploy worked.
We have a tax on tax situation with garage sold fuel. Fuel tax is almost 60pence per litre. (57.95p) VAT or value added tax is added to most retail products. the cost of the fuel, plus the fuel tax is added together and then twenty percent VAT is added. But although we are experiencing a sharp rise in prices, seeing fuel advertised at £1:30, well that doesn't look too bad.
If we still had gallons, that advertised price would be, about £6:10. How did they get away with it? We were told that our fuel tax was harmonised across all the European Union countries. So if we have to pay through the nose, so too do the French, Germans, Spanish, Italians. So that makes it alright then.
Yes, the economic theory that fairness can only be achieved by making everybody miserable.