Does petrol cost too much?
761 Comments | Add Comment | Blog entry posted 23rd August, 2006
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.
{poll=6}Is it fair for the motorist to pay for these extra services as well as for the upkeep of our roads?
Replies to Does petrol cost too much?
Mr-Scorpio November 8, 2011
Of course, the question that needs to be asked, but seems to be brushed under the carpet is:
How & why was the Government ALLOWED to sneak in & then creap up a p*ss taking 60% tax in the first place!???
Are the British public that stupid / blind / apathetic? - Or more likely the Govermment that was allowed to kick start such a policy acting in a subversive manner?
Simon April 1, 2011
I had to laugh when I read the car driving moaning about £200 a month on fuel. I get the train/tube to work. I pay £395 a month + fuel for my car for food shopping etc. Stop whining car drivers. TAX is a fact of life.... get over it! Get on with living.
Edwin Brophy March 31, 2011
Petrol is far too cheap. But an even cheaper and more environmentally friendly option for transport is riding an electric bike. It has many advantages over a pedal only bike, the additional small amount of electricity it uses can substancially increase the number of miles you can go. The amount of damaging effect petrol does on the environment and the congestion problems cars cause preventing buisiness people from travelling does far more damage than motorists pay for.
David Carr March 24, 2011
The Government had real chance to kick start the economy by slashing the fuel
Tax But instead stuck rigged to there fiscal policy what a shame they have just
Killed off any prospect of any growth. Pity I had high Hope for the coalition.
Jason Page March 22, 2011
@Tim... posted 22nd Nov 2010.
I've just come across your remark about how petrol or diesel is not expensive whilst doing some personal research on this very subject.
You use the the 'half litre bottle of water' from Harvey Nic's as a comparison, which, to be honest, i find a little daft. Firstly because you have actually made that comparison and secondly because why would you go to Harvey Nics and buy water form there when you can nip to Sainburys and buy a litre for 68p... Seriously??
So, allow me to put this question to you regarding your bottle of water... imagine this. You live outside a city (You'd like to live nearer to town and perhaps cycle or use public transport, but this is unrealistic as the prices in these areas which would allow you to, are just way too high). Now you work in the city centre, regular job, nothing fancy and have to drive in everyday given the distance you are travelling. But the prices of fuel keep going up which makes making that journey to work almost untenable. You keep trying though but eventually the price rises are too much burden and end up causing more hinderance than help.. this has an impact on the money you have available to actually live. Things like buying food and drink, perhaps that bottle of water we mentioned earlier, becomes increasingly difficult and soon unaffordable because all your money is going on fuel, to get to a job, to pay your own way and taxes, but can't because the very fuel that enables you to get to work actually costs too much.... so you end up not buying that bottle of water and dying of dehydration... so.. is that fuel that you are buying not expensive or does life, being able to live a life hold no value to you?
The government could and should drop the VAT on fuel. It's taxed twice and duty alone costs more than the actual product anyway. Perhaps as a country we need to start looking after the people on these shores first rather than giving away aid to other countries (theres a fair few billion saved that could go towards the national deficit and, in turn, perhaps lower some the costs of this great nation?).
If you had £10 in your pocket, and had a debt/bill for £10 would you loan that £10 to someone else or pay your own bill?
THE USA... the biggets oil consumers on the planet... how much does fuel cost there? We pay 2 or even 3 times as much. Something is wrong. Something has to change.
Neil Marquis January 16, 2011
My wife and I have worked hard all our lives , we have never claimed off the state , we have brought our children up to be usefull members of society , now it is time to sit up and take notice of what is happening in our country.
We have a huge amount paid out each week to lazy workshy scroungers and in many families this is endemic, we go to war and end up losing countless young lives for what? and the cost is so much that we are unable to supply our troops with decent equipment, then we allow so many migrants in that we are in danger of giving our country away to foreigners for free
and we pay for all of this from the huge amount of taxes put on fuel that we buy ,
WHY ARE OUR TRUCKERS AND FARMERS NOT PROTESTING IN THE FRENCH WAY, YOU HAVE THE POWER TO STOP THIS, JUST PARK UP ON THE M WAYS AND WALK AWAY WITH THE KEYS . I KNOW IT IS SEEN AS OLD FASHIONED BUT WHY DID WE FIGHT A WORLD WAR 66 YEARS AGO FOR THIS, IT IS TIME TO STOP MOANING AND START FIGHTING BACK
Tim November 22, 2010
Petrol and Diesel are NOT EXPENSIVE. Just go to Harvey Nichols and you can get a half litre bottle of water for the price of a litre of petrol.
There is shipping costs, filtration costs, purification costs, labour costs, compensation costs, taxes and VAT on petrol and diesel to oil companies.
Granted the companies who ship the fuel are making a bomb, and so are the government, but Shell provide a fuel for your daily needs, and employ over 8 million employees internationally < without them, and your high costs, you wouldn't be driving at all.
Scott November 3, 2011
Tim,
You obviously live outside the real world, I was brought up on a farm, which is outside of a city, in case you have never been there, where fuel is used daily to operate everything, even going to the shop for a pint of milk involves a 10 mile round trip, which at todays prices more than doubles the price of a pint of milk.
I find people living in cities trying to organise a rural country a complete joke, they do not have a clue how things operate outwith the city limits, get your bottle of 'harvy nicks, water and pour that in your car, in fact don't bother, the country side is much nicer without people with your attitue in it.
Panmai October 27, 2010
man i hate the cost of chocolate its so expensive
Victor October 11, 2010
have recently returned from a holiday in the south of France with my Caravan. The price of fuel in France is a lot lower than the UK. The Fench use a system of Toll roads where you can travel from A to B a lot quicker. I believe we should use this system in the UK and reduce the tax on Petrol by 12%. Look at the advantages this will give.
Create more revenue by taxing the HGV both UK and European.
By using the Toll road we would travel faster therefore creating more emissions, again this system would penalise the heavy users.
How does the government justify 80% fuel tax when other European countries
are paying half as much tax .
Therefore transport costs are making it difficult for us to complete on a level
playing field against most other countries.
It is common knowledge that fuel tax in the UK is far higher than any other developed country.
India Alice Rose May 3, 2010
Thank you your website has helped my daughter with her homework wich has made me realise how much we spend on petrol thank you.
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