Public is being ripped off on oil prices

WE might anticipate that this PM could experience a panic reaction to the dreadful thought that even the voters might not wish to see him in No 10, and start throwing bribe increases at pensioners in the hope that some of it might stick.

It would be a small step for mankind towards levelling up...

But why not really take a bit bigger step by doubling up the proposed increase for widows and widowers? The Chancellor could consider no increase to any pensioner where his/her total gross income from all sources exceeded, say £45,000/£50,000, or the joint husband and wife total income exceeded that figure. The lost increase in pension could be graduated into bands; say, 10% loss for total incomes up to say £40,000, to 100% loss where total incomes exceeded £65,000.

There is also the small matter of funding increased pensions.

The Government’s own windfall tax increases will do nicely. Petrol and diesel carry the usual 20% tax but there is a plus. The ‘plus’ fixed charge is currently £0. 53p per litre. So, on a £2 litre the government takes a massive £0.40p, plus £0.53 equals £0.93p on every £2 litre. In the halcyon days, when diesel cost £0.50 per litre, the Government got 20% = 10p, plus whatever the fixed charge was at the time.

So at present the Government is also coining it on the varying fixed charge and the standard 20% charge. Rishi cut 5p off the 20p per £1. And at the pumps it simply disappeared. But not in the motorist’s pocket.

The question I would like to ask Rishi is, why does the law of supply and demand not apply to the price of fuel? According to the law of supply and demand, prices would vary dependant on supply and demand. High demand – low supply – the price is high. Reverse it... low demand – high supply – the price goes down. But not in the case of diesel and petrol. Why not? There is not a shortage nor a huge increase in demand. In April, demand increased because lockdown ended.

We know the market is ‘engineered’ by Opec to balance supply and demand prices. Tell us about it. Tell us also about the oil futures market and oil speculators. The dark striped suits and dark glasses that hover in city financial places. The people who make millions daily by ‘managing’ prices of oil. Many of us are certain... we are being ripped off over the oil prices we pay and it not supply and demand – it’s engineered.

Don Frampton

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