The Chancellor in his Budget today announced a reduction in Road Fuel Duty. Duty is presently fixed at 57.95ppl for diesel & petrol. VAT is then added to the duty as well as the product.
This news is good for motorists, but not for independent & some Main branded garages.
Now just consider that you own a garage and had a delivery of 35000 litres yesterday. Today the Chancellor says that the duty is down by 5ppl. Your stock is now worth £1750 less than you paid and the Government won't give you that back.
So, do you reduce the price by 5ppl at 6pm tonight and lose that £1750 or do you hang on and reduce it when you next order a delivery? And garages pay for their fuel on the day of delivery. If they are doing well they may make 10ppl, (though many won't). So you fill up with your 40 litres and the garage has made £4 on you less his running costs, staff etc, and remember he had to pay £61,600 up front for that £4.
Now you know why they all have a mini-market on site!
This will be a tough time for garage owners.
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