Stat of the month: A taxing tankful

UK motorists endure some of the highest petrol prices across Europe, in no small part because of the level of tax on fuel. At the moment, in fact, 62.5% of the cost of a litre of fuel is tax

by MT Staff
Last Updated: 09 Oct 2013

The average cost at the pump is now around £1.30 a litre, but the petrol itself only accounts for around a third of that. Fuel duty at 59p, plus VAT, means that the rest - no less than 62.5% - is tax, filling up the government coffers nicely, with fuel duty alone bringing in more than £26bn annually.

After mounting pressure from incensed drivers, the Treasury is considering scrapping another 1p increase, due next month. It is also pondering whether to introduce a price stabiliser, which would cut tax as pump costs rise. That might stop the prices fuelling around.

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