23.08.06 Does petrol cost too much?
We don’t like to get ripped off when buying fuel and that’s why we created the Petrol Prices website. But even with the help of our site, UK consumers are still spending more and more money on fuel because of rising oil prices and rising taxation.
Fuel is taxed twice – firstly by fuel duty and then by VAT. Fuel duty is a fixed amount (47.1p per litre for unleaded and diesel) and VAT is a percentage (17.5%). To make it easier to understand, look at our breakdown of the price of a litre of fuel.
The money that is raised by fuel taxation goes into the Chancellors pot and taxpayers money is spent on health, education, social services and so on. In the 2004–05 fiscal year, fuel duty alone generated approximately £23.5 billion and this does not include the VAT raised on the fuel sold. In the 2005-06 fiscal year only £21 billion will be spent by government on transport as a whole. So, fuel taxation not only pays for the upkeep of our roads but it also helps to pay for the other things that government spends our money on.








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I agree with (the oldie) David,I might add that I too am (an oldie) and that young people do NOT have the perception of prices,if we were still on price per gallon then am sure they would.When petrol goes up even 1p a litre young peole DONT think that is very much but if it were 5p a gallon then am sure they would be shouting out the odds!!!!
Yes petrol is too expensive.
My local independent Filling Station owner is always telling how he can not BUY fuel from his supplier at the same price that Asda and Tesco SELL it for.
Can this be true?
If so, how?
As a diesel owner I would like to know why diesel is more expensive than petrol as it is cheaper to produce, and lorry's that carry our goods to their destinations are passing this extra cost onto the consumers.
If the cost of diesel was to be reduced to the proporsional cost of producing petrol then the cost of comsumer goods would fall.