Tuesday, June 01, 2004

The grass is still greener in England!

Reports of grouchy U.S. drivers having to suffer higher prices at the pumps always irritates me as a Brit. Prices in the U.K. have always been twice as high this side of the pond.

Taxes account for a larger proportion of the final UK retail price of fuel when compared to Asia and the US. This acts to buffer the effect of changing oil prices. Since the British government can decide when and by how much to raise taxes on fuel, the retail prices is less exposed to the volatile market price.

The next time you hear a reporter talk of 'higher oil prices threatening to fuel inflation and derail the U.S. economic recovery' suggest they take a look at the stable inflation rate and strong economy in the UK and see what kind of reaction you get.

1 comment:

Anonymous said...

I don't suppose the originators of the English language ever remember that one cannot see a reporter talk ... but rather hear one?