1995 54p Tax 39.4p
1996 55.8p Tax 42.9p
2000 76.2p Tax 58.6p
2005 91p Tax 60.6p
2007 95.1p Tax 63.7p
Thefuel escalator (intro'd by the Conservatives) forced prices up from one of the lowest in Europe to now one of the most expensive. When it was first added, fuel prices rose by 3 pence a litre and tax contributed to 72.8% of the total cost. By 1997 the escalator had added 11.1p to the cost of unleaded petrol and was at 75%. It didn't get any better when the conservatives left office and Gordon Brown took over, as the escalator increased and 3 pence was added per litre. This took tax up to an incredible 81.5% of the total price of fuel.
The esculator was scrapped in 1999, but obviously petrol goes up by 4-6p a year through the budgets, last tax rise was scrapped. the tax includes 17.5% VAT.
British drivers pay two taxes on petrol they buy at the pump and fuel campaigners complain about the fact that VAT is charged on the cost of fuel and the duty and feel it should only be calculated on the cost of the fuel for a fairer petrol price.
As of 1 October 2007 effective rates of duty for non-road fuels increased by 2 ppl. These rates are set to be increased by the same percentage as the main road fuels on 1 April 2008 and again on 1 April 2009.
From 1 October 2007 duty rates for unleaded petrol, leaded petrol, aviation gasoline and other heavy oil used as road fuel were increased by the same percentage as the main road fuels.
From 2007-10-01 the main road fuel (petrol and diesel) duty rate in the UK is GBP£0.5035 per litre. The rate for biodiesel and bioethanol is £0.3035. Value Added Tax (VAT), currently at 17.5%, is also charged on the price of the fuel and on the duty. At a pump price of 100p/litre (typical for unleaded as at November 2007), this would put the combined tax at 65.24p/litre, or approximately USD$4.84 per gallon. Thus without tax, the retail price would be 34.76p per litre, making a combined tax rate of 188%.
(Most of this info has been copied & pasted as I couldn't be bothered writing it all out) Google Fuel Tax UK and you will get all this info and more besides.
When the market opens again at 8am on tuesday I think it will surge again to $135 (Brent) and may settle back to $132/33, seems to drop after midday.
As for inflation I don't agree with the fact that it is kept artifically low, as mortgage & fuel are not included in inflation calculations!
Regards
Martin
