Monday, July 07, 2008

Andrew Lilico: On Sleaze, Knives, and Oil Fiddles

Just over a week ago we had Andrew Lilico, an economic theorist rather than an ethical philosopher, telling us all to give sleazy MPs a break just as it's Tory scum that start to top the pond life. Now he is musing about country boys and legal nine inch knives and also taking responsibility for Osborne's fuel price stabiliser idea which he published in the European Journal, October 2000. Click pdf to view or URLs at his Conservative Home post.

This is absolutely fascinating stuff. At the time a barrel of Brent Crude had recently more than TREBLED in price from $9.81 to $34.90 between December 1998 and September 2000; unleaded petrol at the pumps rose from 63p a litre to 84.1p in the 18 months to June 2000; and of that 22.7p was pre-tax total and 18-19p crude-related; and 48.8p was excise duty and 12.5p VAT.

I guess, based on Andrew's breakdown, that today the crude-related portion would be around 76p and with oil company value-added around 92p.

Which is not dis-similar to 84p plus inflation. So are these fuel-pain-feelers arguing that to keep everything comfy excise duty should have been reduced to zero and VAT rate reduced too? Actually academic Lilico, and out-Tory and Lilico-stepfather Brian Bailey who also gets his name on it, are not arguing this but that does seem to be the way The Mail/GOOey Osborne are spinning things (See "Stealing a March" second up). Caveat emptor!

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