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Tuesday 16 March 2010

Why is the petrol price going up?

The BBC manage to report that
"Petrol prices could hit a record high of £1.20 a litre in the next few weeks, according to the AA."
without mentioning how much of the price of a gallon of petrol at the pump is taken in duty and tax. I was going to refer to ABD's useful table but that only goes up as far as £1.099 a litre, being a year or so old. So I used the ABD Fuel Tax Calculator and that shows that with a pump price of £1.20 per litre, VAT accounts for £0.1787 per litre, fuel tax for £0.5619 per litre; so tax and duty makes up 61.72% of the price paid at the pump or put another way - the tax and duty rate on petrol is 161.22%. Now why would the BBC not be interested in revealing that sort of information?

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