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5
Mar

With fuel tax set to increase by 2.5p on April 1st, analysis of official figures show that tax paid at the pumps in the form of fuel duty and VAT has soared in the past 15 months.

UK tax on fuel went up 13.53 per cent between November 2008 and last month.

In Austria the figure was just 2.23 per cent, while France and Germany also saw similarly small rises.

The analysis by the AA found that on November 24, 2008, Britons were paying 92.79p a litre for unleaded – of which 64.17p was tax. A fortnight ago, the price had increased to 111.89p a litre – of which 72.85p was tax.

So, the tax rise alone was 13.53 per cent. The total rise in the pump price was 20.58 per cent.

For UK diesel car owners, the fuel tax burden increased 8.10 per cent – lower than the 8.33 per cent in Ireland, but well above the 2.89 per cent average for Europe.

The UK tax risks further stoking up inflation and putting the economic recovery at risk, said AA president Edmund King.

‘Our research shows that most other European countries have resisted such fuel tax hikes over the past 15 months, and they have also had to deal with the fallout from the credit crunch,’ he added.

‘Petrol and diesel are necessities for the majority of the population and businesses, yet are taxed as luxuries. Further increases could backfire on economic recovery.

‘With higher fuel prices contributing significantly to inflation, adding another 2.5p to the cost of petrol and diesel in April could do more harm than good to the public purse, economic recovery, hauliers and car owners.’

On top of the tax rises an average 1.5p a litre rise in pump prices since mid-February sees petrol now at £1.13p a litre.

The Treasury admitted that soaking motorists with higher taxes at the pumps was a central plank of the Government’s strategy – its ‘deficit reduction plan’ – to reduce its massive debts.

Category : Economy News

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One Response to “UK Petrol Tax 6x Higher Than Europe”


frengki March 6, 2010

i like this,…………………..
:)