It Doesn't Make Any Sense To Me.

[nicebloke1]

Whats your view. In April the government intend increasing the fuel duty to around 12p litre.
This increase is just going to fuel more inflation is it not?

[rowanwitch]

It isn't high enough to force drivers off the road so it isn't even a valid rise on environmental grounds unless they ring fence anything raised to fund greener transport initiatives.

[Canary42]

I like the pun

[nicebloke1]

To keep it simple, lorries deliver goods all over the country, especially food. Diesel costs have been put forward to be one of the main reasons ( not the only one) for food increases.

[Zacs-Master]

Correct.
“Our analysis shows there is a clear link between inflation and fuel prices. When the prices drivers pay to fill up rise, inflation seems certain to follow. That’s something the chancellor must recognise as he considers what action to take today"
https://www.autocar.co.uk/car-news/consumer/fuel-duty-may-rise-12p-litre-next-year

[Canary42]

Oh to go back to the good old days of steam railways for distribution of goods.

[nicebloke1]

Thanks for the link. I just find it incredible that government can't see it. Its not something you even have to think about.

[perseverer]

Note in the OP, fuel duty might rise by 12p, not to 12p a litre. Currently is 52.95p a litre.

Autocar article is from November. Any more up to date info?

[nicebloke1]

The only other explanation I can come up with, is that they have no intention of doing such, when April comes around they call it off leaving us all happy and jumping for joy.

[rowanwitch]

The usual approach is float something unacceptably high then when the time comes it's at the figuratively intended all along. Probably around 7p a litre rise. This leaves people thinking on that's not so bad then... It's all about creating false baselines.

It's the same when a firm wants to cut jobs, They always start about 50% higher, so the union can negotiate them down to the number they first thought of.

[jno]

the government wasted £10bn on useless PPE deals, so they need to raise money somehow

https://www.bmj.com/content/376/bmj.o296

[nicebloke1]

11.58 All very true, but even the threat can damage businesses future plans for next year, even the purchase of new lorries, and vans for home delivery. Its just seems mad to me, the thinking behind it all.