Fueling Stagflation

No, you are not seeing things. The fuel prices on that sign have been updated through the creative use of yellow electrical tape.

The ANZ/National Bank and the AA have been making noises along the lines that the government should be looking at removing the tax from petrol to give the local economy some respite from the continual rises in oil prices. watch video here

That was this morning.

I sent my secretary down to take the above photo - too late. The price had already jumped by 6 cents by the time she got down there.

Which illustrates why the government doesn't seem to be seriously considering reducing the petrol tax. Removing the petrol tax would give drivers a respite but for how long? 2 or 3 months? By then we will not only be no better off but have no funding for roads or to top up the consolidated fund (which is where the petrol tax money goes by the way).

That would mean no tax cuts. An election loser if ever I saw one.

Stagflation - an economic term meaning a state of inflation without corresponding increase in demand and employment.

Welcome back to the 70s.