Thursday, January 13, 2011

Raking It In

There are some winners thanks to sky high petrol costs.  Apart from the suppliers, the government is apparently trousering around £2 billion in extra cash.  The cost of oil will hand the Treasury a windfall in extra tax this year while motorists endure record petrol prices.

The Office for Budget Responsibility, the Treasury’s official forecaster, estimates that every $1 rise in the price of a barrel of oil earns the Government an additional £150 million in revenue over a year from the North Sea oil industry.  The Treasury’s economic plans in November were based on an official projection of $85 a barrel, however, rapidly increasing demand for oil on the world markets has pushed the price above $98 a barrel.  And it's still rising.


More at TTel.

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