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Relative to total fuel costs the tax makes up a lesser proportion of the cost of fuel than it did 5 years ago. I read this in autocar magazine.

An inconviencent truth it may be that duty makes a lesser proportion of the cost of fuel than it used to, but a truth it is.
 
Relative to total fuel costs the tax makes up a lesser proportion of the cost of fuel than it did 5 years ago. I read this in autocar magazine.

An inconviencent truth it may be that duty makes a lesser proportion of the cost of fuel than it used to, but a truth it is.

Not looked, but if my memory is correct oil in 2008 hit around $140, so it looks like it may be a bit of a selective article.
 
The sooner the government get into the petrol companies and stop the profiteering the better. When oil prices drop it is rarely passed on, but rises straight away.

It was a previous government that created a domestic energy market that allows 6 private companies to take us all to the cleaners for the gas and electricity we need. Therefore the chances of any future government trying to intervene and act against huge multi-national oil companies is pretty much nil.
 
Relative to total fuel costs the tax makes up a lesser proportion of the cost of fuel than it did 5 years ago. I read this in autocar magazine.

An inconviencent truth it may be that duty makes a lesser proportion of the cost of fuel than it used to, but a truth it is.


Said that, while the percentage of tax in the total cost of fuel did go down, given that the tax actually increased from around 60p in 2006 to just over 80p in 2012, this is a rise of 33%.... so even with inflation factored in, the government had a good ride on the back of the global oil prices increase.
 
Self-moderation: Political comment removed ;)
 
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^ Highly unlikely as they are the one's taking around 80% tax on every ltr sold & we as a nation do nothing but moan about it!

At ~70ppl including Vat, out of ~1.40ppl, how does that equate to 80%? I make it 50%.
 
A very interesting statement. So what taxes would you envisage raising to replace this duty? Income tax? VAT? Or stop all benefits? Cut back on the NHS?

Cut excessive Police pensions and sickness payments. ;)
 
Said that, while the percentage of tax in the total cost of fuel did go down, given that the tax actually increased from around 60p in 2006 to just over 80p in 2012, this is a rise of 33%.... so even with inflation factored in, the government had a good ride on the back of the global oil prices increase.

How do you arrive at 80p for tax?

My understanding is that fuel tax is 59.95p and vat makes up 10p
 
How do you arrive at 80p for tax?

My understanding is that fuel tax is 59.95p and vat makes up 10p


I didn't - the Guardian did:

Month, year - UK AVERAGE Fuel Price in litres (unleaded 95 octane) - Tax, pence - % tax
October 2012 - 138.9ppl - 81.12p - 58.40%

No idea how they worked it out though, they do not not provide a breakdown.
 
Dieselman said:
How do you arrive at 80p for tax?

My understanding is that fuel tax is 59.95p and vat makes up 10p

Which proportionally is lower tax wise for the total cost of fuel than it's ever been....
 
How do you arrive at 80p for tax?

My understanding is that fuel tax is 59.95p and vat makes up 10p

I didn't - the Guardian did:

Month, year - UK AVERAGE Fuel Price in litres (unleaded 95 octane) - Tax, pence - % tax
October 2012 - 138.9ppl - 81.12p - 58.40%

No idea how they worked it out though, they do not not provide a breakdown.


According to HMRC the fuel duty is actually £ 0.6097 plus 20% VAT on the cost of the fuel and the duty together. So whether the VAT reaches 20p to make up the 80p that the Guardian suggest really depend on the cost of the base fuel...

In other words the direct tax (fuel duty, and the 20% VAT on the fuel duty) is 73p, plus the VAT on the fuel itself. So 80p does not sound too unreasonable I think?
 
Which proportionally is lower tax wise for the total cost of fuel than it's ever been....

This is true, as well as the fact that the tax has increased considerably over the years.

The low percentage is the result of the fact that the fuel duty is a fixed amount in pence, so when the cost of fuel goes up the duty becomes in proportion smaller percent of the overall price.
 
At ~70ppl including Vat, out of ~1.40ppl, how does that equate to 80%? I make it 50%.
My mistake-depends on who's figures are most reliable,bbc news friday evening qouted 80p tax on every ltr of fuel in the uk.
 
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So I gather the tax on diesel is higher than on petrol - hence the price differential. If not then why is diesel cheaper than petrol in most other countries. At 9p a litre and the new very economical petrol engines emerging I can see a swing towards petrol again.

Has anyone driven an Ampera ?
 
markjay said:
This is true, as well as the fact that the tax has increased considerably over the years.

The low percentage is the result of the fact that the fuel duty is a fixed amount in pence, so when the cost of fuel goes up the duty becomes in proportion smaller percent of the overall price.

Imagine if the percentages of five years ago what fuel would cost now?
 
What really matters is the individual's annual spend on fuel relative to salary.
 
There won't be a swing, I don't think... Diesel cars are much sought after because of popular misconception that they are cheaper to run.

But in fact most people will not get up to the annual mileage required to break-even considering the higher purchase cost (and the higher repair bills if the car is out of warranty - not to mention DPF issues on low-mileage cars).

Given that now around half of all new cars sold are diesel, and most cost their owners more than equivalent petrol-engined cars over the course of ownership, there is no reason to assume that further increase in the cost of fuel will change people's mind.

As long as diesel mpg figures will be better than petrol people will keep buying diesels regardless of overall costs.
 
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