18.03.09 Duty rise set to bring fuel tax to 71% in 2 weeks
In just 2 weeks fuel duty will rise again, bringing the total tax paid at the pumps to 71 pence in every pound - despite Prime Minister Gordon Brown promising not to raise fuel duty.
Watch Brown pledge to freeze fuel duty. (1.40m - 2.02m)
Fuel duty is set to rise by roughly 2 pence per litre on April 1st meaning that 66 pence of the average litre of fuel goes directly to the Treasury.
Fuel tax goes into a central government tax pot. It's not necessarily allocated back out to motoring, so fuel tax can be spent on anything – the NHS, housing, pensions or even banking bailouts.
At the height of soaring pump prices Brown made a promise during Prime Minister's Questions on July 16th 2008 not to raise fuel duty for a year.
He stated: "In recognition of the problem people face with petrol, we are freezing duty on petrol for the full year."
Brown broke this promise in December 2008 when he added 2 pence per litre to fuel duty to offset the reduction of VAT to 15% - a move which angered UK hauliers who are able to claim fuel VAT back, but not fuel duty.
He is set to break the promise for a second time on April 1st when fuel duty on unleaded and diesel will rise 1.84 pence per litre. Including the additional 15% VAT on top this will make the rise at the pumps around 2 pence per litre.
The Treasury have said that the only time further changes to fuel duty can take place are at the next Budget – which has been postponed from March until April 22nd, after the duty rise comes in.
Do you think the Budget has been postponed to push through a duty rise unchallenged? Do you think it's fair that 71% of the cost of a litre of fuel goes directly to the Treasury? Should Brown be held to account for breaking his promise not to raise fuel duty? Leave a comment below and let us know your thoughts.








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Typical of this government - say one thing and do another. We pay so much tax in this country on everything and yet there isn't any noticeable improvement in services.
I'd like to know where the money raised during the economic boom has gone; this should now be shoring up the recession instead of hitting the taxpayer yet again with more stealth taxes.
How can this be justified in our economic climate. People are being made redundant daily and if not made redundant being asked to take a pay cut.
Is Mr Brown going to take a pay cut!!!! I doubt it!
Mind you, he will be made redundant in the next election :-)
People who have not got enough money already due to job losses, increased prices in food, energy etc are being made to pay even more to the government and the fat cat oil companies who are making millions of dollars per second!
Come on Gordon, what about the average Brit, or have you forgotten us?
Well with wars on two fronts, an imploding economy, and bank bailouts that stretch from here to the moon, it was only a matter of time before we saw huge tax hikes. In just over a year we will all get the chance to vote with our feet! Thanks Gordon and good night!