21.04.09 Budget 2009: Will fuel tax go up again?

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25 comments 109 votes

Should fuel duty go up again in the Budget 2009?

The Chancellor of the Exchequer Alistair Darling is due to present the 2009 Budget tomorrow, but what will it have in store for pump prices?

Drivers have already had around 4 pence worth of extra duty added to fuel in as many months, and in the 2008 Budget another rise of 0.5 pence per litre above indexation was announced to take place on April 1 2010.

Fuel tax is currently made up of a fixed duty of 54.19 pence per litre, which is added to the raw cost of the fuel, then a percentage VAT is added on top. VAT is currently 15% following the 'VAT holiday' introduced in December 2008, but is due to return to 17.5% at the end of the year.

The UK average price of unleaded is currently 95.4 pence per litre, and the average price of a litre of diesel is around 102.9 pence.

PetrolPrices.com launched It's Your Duty 2 weeks ago to campaign against a further duty hike in tomorrow's Budget. So far more than 53,000 people have visited WriteToThem.com from the campaign pages to ask their MP to raise the issue of fuel tax ahead if the Budget, and the campaign Facebook Group has more than 9,000 members.

A driver spending �25 a week on fuel spends around �1,300 a year at the pumps - �882.93 of which is tax. Another 2p rise would bring the average driver's total spend on fuel tax to �911.76 a year.

The government's policy on fuel tax is to raise it each year in line with inflation � but figures out today show the UK is now entering a period of deflation. RPI is now at 0.4% so the chancellor has no reason to raise fuel tax.

However, fuel duty has risen twice since Prime Minister Gordon Brown promised he wouldn't raise fuel tax for �the full year� last July.

Will the chancellor stick to existing policy tomorrow? Or will fuel tax go up again? And did MPs listen to the drivers who wrote to them?

Your Comments

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of course it will go up. there is no doubt about it. whats the easiest place to hit people, especially motorist and raise extra needed revenue? Fuel Duty

Posted by Hits, 22nd April 2009 12:31pm

Fuel duty is going up 2p from September. START THE PROTESTS NOW!!!

Posted by Chris Scott, 22nd April 2009 1:16pm

Another 2p increase in September. What a shambles of a government.

The General Election can't come fast enough.

Posted by Pete M, 22nd April 2009 1:21pm

Going up 2p in september.

Vat back up in December.

Fuel tankers sitting off our coast so they can sell it when prices go back up.

SORT IT OUT GOVERNMENT!!! they just make themselves look stupid over and over

Posted by Alex Green, 22nd April 2009 1:44pm

These are dangerous times for labour. They had better watch themselves.

Posted by Goverment, 22nd April 2009 1:48pm

2p Rise From Sept and then 1p every april what a joke this is we are being treated like fools why do we put up for this. Will there ever be any fuel protests or will we just sit back and be shat on!!!!

Posted by Stu Mann, 22nd April 2009 2:03pm

@ 6

To answer your questions: no and yes

Posted by The Truth, 22nd April 2009 2:18pm

now they have put fuel up by 2p per ltr, has anyone thought about the reduction nationally of speed limits. my car is automatic and only goes into top gear over 50mph, so now rural roads are reducing from 60 to 50mph, my car will not be efficient, and therfore we'll need more fuel.............so the govt get more money from our fuel purchases.

Posted by Steve, 22nd April 2009 2:20pm

Once again he hits out at the motorist in his Budget more like ruin the nation. I have to drive to work, I have no other way and I drive 50 miles round trip. Jobs the way they are at the moment are not easily come by so I would like to keep mine for now - BUT AT WHAT COST MR CHANCELLOR?

Can he think of no one else to get the money back off for bailing out incompitent Bankers!

Posted by Kath Walker, 22nd April 2009 2:53pm

Tesco: 93.9 100.9
Total: 95.9 102.9
Gulf: 1.03 1.10
Total: 95.9 103.9
Jet: 56.9 95.9 102.9

Posted by Joshua Walker, 23rd April 2009 6:19pm

Diesel is probably going up to 131.9ppl again by 2014! I dunno how much Shetland is goin' to be. Unleaded probably 124.9ppl by 2014. And LPG probably will go up to about 69.9ppl

Posted by Joshua Walker, 23rd April 2009 6:24pm

NOW

Tesco: 94.9 100.9

SEPTEMBER

Tesco: 96.9 102.9

6ppl/d

Posted by Joshua Walker, 7th May 2009 7:33am

NOW 100.9

September 2009 102.9

April 2010 103.9

September 2010 104.9

April 2011 105.9

September 2011 106.9

April 2012 107.9

September 2012 108.9

April 2013 109.9

Posted by Joshua Walker, 8th May 2009 7:44am

Tesco: 94.9 100.9
2013: 103.9 109.9

Total B: 95.9 102.9
2013: 104.9 111.9

Gulf: 1.03 1.08
2013: 1.12 1.17

Total SC: 96.9 104.9
2013: 105.9 113.9

Jet:

Posted by Joshua Walker, 8th May 2009 7:55am

What about the prices of petrol now? Can it go no hirer we went on strike before when it was well lower than this dont we all love being british

Posted by Daz Mc, 29th June 2009 7:19pm

this is just ridiculous , i wish it was a way we can all stop paying for the petrol, to make them monkeys realize that we just cant afford to pay just a few pence extra per litre. they have no choice but t lower it , thanks again damn crappy goverment

Posted by Matt D, 3rd July 2009 4:18pm

petrol/diesel prices should be battled once and for all that a ceilling price be fixed to enable the public to calculate their cost of living better and forget about wars to which is a major cost to the serviving families.

Posted by Richard Japheth, 13th August 2009 1:44am

we control the petrol and diesel prices all we need is more people to join in on the protests set a day where we can get as many people as we can not to use petrol stations stop motor way taffic by drive in large groups and cars van and trucks they would lose billions every hour

Posted by Karl S , 4th January 2010 6:24pm

18

Got it organised have you? Funny that no-one else has heard about it and will therefore get on with their normal daily business! Who is "we" anyway?

Complete garbage.

Posted by George, 5th January 2010 5:15pm

greedy government, when is it going to stop,life is a struggle know why is the government trying to nail us British with their taxes on every thing,its getting out of hand,its about time we started fighting back,something has to be done.what happened to the free country,the only thing they haven't done to us yet is built a prison fence round the UK to keep us in. lets have a strike for starters,if don't work then lets go to wore,we need to let the greedy government that were not taking any more of their rubbish.

Posted by Richard Rees, 24th January 2010 6:45pm

of course supermarket petroleum prices need to reflect consumer spending
that is why the Govn't looks too them to provide a swift tax profit

Posted by Gary Brittain, 28th February 2010 12:38am

If we are to assume that every country raises its taxes thro' fuel duty then are we also to assume that the price quoted at the pumps in price/litre is contrary to the mpg miles/gallon or fuel efficiency?
Every time we go to the pumps we buy our fuel at the price quoted /litre
and then we are forced to calculate or read in glossy magazines what our car's mpg is! M.P.G. was an objective analysis of how many miles will £5 take me?
Now it's a preposturous assumption to think that if supermarkets/garages across the the country displayed the real cost of fuel i.e. over £5 a gallon
that they would sell any at all?

Posted by Gary Brittain, 28th February 2010 12:53am

Let's pretend my name is Anthony F...Wit and spend more on fuel a week by 4 times the average which is industry level consumption.
any taxman worth his salt can see that my business is already paying 4 times as much by consumption. but like my average counterpart my consumption is not a problem in fact it just delivers more tax before profit on that consumption. Confused?
Fuel purchase is anomymous in its transaction, the country's economy drives its use and abuse.

Posted by Gary Brittain, 28th February 2010 1:07am

The best supermarkets would come up with is a knockdown price of £4.99 a gallon but its already going in the consumers direction. Why?
Because Supermarkets endeavor to price at ££+ 99p or less than i.e. if something costs a pound they'll sell it at 99p . if not they are no good to us.
i'm now more than convinced that supermarket fuel quality is not compromised by its quality but more blessed by its ability to sell.

Posted by Gary Brittain, 28th February 2010 1:34am

you are correct sir in row 20

Posted by Gary Brittain, 28th February 2010 1:56am

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