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We all talk about the price of fuel in the UK and how high it is. But do you know exactly where your money is going when you buy your fuel? The information below, gives the approximate breakdown
of a litre of petrol in the UK, as it was in August 2008. Generally, the cost of digging oil out of the ground and refining it makes up about 32% of the price. The Petrol retailers get about 5% (not profit but in total) and a whopping 63% of the price goes to
the government in fuel duty and VAT, both of which taxes you pay on the price of your litre of fuel. While fuel duty is fixed at 53.5p a litre VAT collected rises as the price goes up! |
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This approximate breakdown of the price of petrol is based on the assumption of a £1.10 per litre. |
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Refinery Petrol Costs - 37.70p |
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Petrol Fuel Duty - 50.35p     
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VAT (17.5%) - 16.39p |
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Forecourt Costs - 3.3p |
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Forecourt Profit - 2.2p |
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In October 2007 the fuel duty was increased to 50.35p per litre by the Treasury. For the full details of what fuel duty currently is for diesel, petrol and LPG,
click this link. and scroll down to Fuel Duty. |
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