What is fuel tax and how much does it cost in the UK?

A driver fills his car with fuel

Fuel tax is expected to be reduced by 5p today (Image: Wessex News Agency)

Chancellor Rishi Sunak is expected to address the fuel today during today’s spring declaration and declare on Sunday that refilling cars should not be ‘prohibitively expensive’.

There is hope that Sunak will lower the fuel tax by 5p, saving UK drivers around £ 3 on filling a 55-liter car.

In the midst of rising fuel prices, a reduction in fuel tax would be a welcome change among drivers who are feeling the pressure.

But what is fuel tax and how much does it cost in the UK?

What is fuel tax?

The price of fuel is affected by a number of factors, including the price of crude oil, supply and demand, and fuel tax, which the government charges.

Fuel tax is a tax levied by the state, which is included in the price consumers pay for petrol, diesel and other fuels used in vehicles and for heating.

person fills a car

Fuel tax is a tax – it is included in the price of gasoline and diesel (Image: Getty)

You also pay standard VAT at 20% on most fuels or the reduced rate of 5% on fuel for home heating.

How much does the UK fuel tax cost?

Fuel tax rates vary depending on the type of fuel.

According to government website, the current rates are as follows:

  • Petrol, diesel, biodiesel and bioethanol – 57.95p per liter
  • LPG (Liquefied Petroleum Gas) – 31.61p pr. kg
  • Natural gas – 24.70p pr. kg
  • Fuel oil (burned in an oven or used for heating) – 10.70p pr. liters

person paying at a fuel pump

The cut can save drivers £ 3 when filling a 55-liter car (Photo: Getty)

A study of The RAC revealed that 7-in-10 drivers said they are ‘very concerned’ about how high fuel prices are. This has risen from 51%, saying the same at the end of October last year, when average prices were 25p and 33p per share. liters lower for petrol and diesel respectively.

RAC Police Chief Nicholas Lyes said in a statement: “Whatever the chancellor may have up his sleeve today, the great strength of feeling among drivers and companies for him to act clearly.

“Doing nothing and forcing millions who depend on their vehicles to cut their spending in other areas just to keep them running does not seem to be an option.”

MORE: Sky-high fuel prices are forcing parents to take drastic measures to reduce the cost of running a school – Rishi Sunak needs to fix this

MORE: Fisherman pulls boat out of the water with crane to burn it on BP because it’s cheaper

Follow Metro across our social channels, on Facebook, Twitter and Instagram

Share your views in the comments below

Leave a Comment

Your email address will not be published.