What Costs are there with 1 Litre of Petrol
The price of petrol is a strong talking point in the UK. But do you know exactly where your money goes when you buy a litre of unleaded? The prices below give the approximate make up of a litre of petrol in the UK as of August 2007.
This breakdown of the price of petrol is based on the assumption of a £1 per litre of petrol.
- Petrol Fuel Duty - 48.35p
- VAT (17.5%) - 14.9p
- Refinery Petrol Costs - 31.75p
- Forecourt Costs - 3p
- Forecourt Profit - 2p
This means that the forecourt is 5%, the oil cost is ~32% and taxation ~63% of the total cost as can be seen more clearly below:
From the 1st of October 2007 the amount of tax on a litre of unleaded and diesel shall increase by 2p per litre to 50.35p.
As the price of oil per barrel increases so the headline percentage rate of taxation per litre decreases. Despite the level of taxation increasing the percentage amount of tax has decreased as oil prices have gone up faster than fuel duty rates.
LPG shall increase from 12.21p per kg to 16.49p per kg hitting an area of the market that has seen rapid growth in numbers of vehicles capable of using the fuel due to its (current) low tax rate. How long shall it last?
Fuel duty is just one way for the government to raise tax to provide the services the UK needs and also to (allegedly) provide an incentive to seek alternative means of transport such as trains, buses or bicycles. Is it working? Probably not. Most people would have to see a very large increase in fuel tax before they would give up the convenience of their cars for other methods of getting around.
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Date Added: Thursday 12th March 2009
"we need information about diesel !!!!!!!!!!"
david glover