06.03.09 April fuel duty rise to bring fuel tax to 71%
Fuel duty is set to rise again in April by roughly 2p, making make fuel tax around 71% - or 66p - of the cost of a litre of unleaded.
The rise was originally due to come into force in October 2008, but was postponed in July when pump prices were an eye-watering 119.9p and 134.9p per litre for unleaded and diesel respectively.
Fuel tax is made up of a fixed fuel duty plus the basic cost of fuel, with 15% VAT added on top. From April 1st, fuel duty will rise by 1.84p per litre and VAT will remain 15%, making the increase in total around 2p per litre.
However, because fuel prices are much lower than the peak prices of 2008, will anyone remember that fuel tax is set to rise? There has been very little coverage of it in the news despite it being less than a month away, meaning the tax hike might go through unnoticed. Once it's through there's almost no chance it will be reversed.
The rise in duty hits the UK's hauliers particularly badly, because they can claim their fuel VAT back, but not fuel duty. The Road Haulage Association say the rise will add around £1000 per year to the running cost of an articulated lorry at a time when the weak pound makes them less competitive than their European counterparts.
The extra 2p per litre will cost the average family £104 a year assuming that prices stay at 90p per litre.
The problem is, they almost certainly won't. Prices have crept up about 5% since the beginning of the year, and the further they rise the more motorists will pay in fuel duty because of the VAT element of fuel tax.
Do you think enough people know that fuel duty is set to rise again? Do you think 71% is a fair tax rate? Leave us a comment below.
EDIT: The changes to fuel duty will mean an average litre of unleaded currently costing 90.9 pence per litre will cost 93 pence per litre after the duty rise comes into effect. This will make the percentage of a litre of fuel costing 93 pence 71%, not 73% as previously stated.








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I've said it before and I'll say it again
We should have a fuel duty regulator whereby fuel duty automatically varies
with the volatile price of oil.
We would then have a more constant, consistent price of diesel/petrol and this would help keep the price of goods more stable.
Hi,
96.5% of all carbon dioxide emissions are from natural sources, mankind is responsible for only 3.5%, with 0.6% coming from fuel to move vehicles, and about 1% from fuel to heat buildings. Yet vehicle fuel (petrol) is taxed at 300% while fuel to heat buildings is taxed at 5% even though buildings emit nearly twice as much carbon dioxide!
As much as Adrian's idea is a good one, the government know they are on to a win win situation.
Everybody uses fuel in one capacity or another so the highest ever tax rate is applied to maximise profit.
Sod the customer, sod the consumer, sod the voters, sod us all. Just pay up and shut up seems the order of the day.
As I have said before, in this country we allow ourselves to be treated in this fashion. In France they would be burning sheep in the roads by now.
A UK protest? Whatever.
Steve M is correct that this government would not introduce a fuel duty regulator and I fully agree with everything in posting 2.
I feel given the current economic climate that the fuel duty rise should be at least postponed but as it is due to come into effect from the 1st of April and the "budget" has been delayed til 22nd of April (slight of hand)?the duty rise will definitely go ahead.
The European commission has announced that it is to "look into" the alleged apparent cartel that is keeping pump prices higher than should be, given the current cost of a barrel of oil.
Any bets on a "Whitewash"?
Incidentally we like to look after our sheep in Wales, lol.