British motorists are paying more tax on diesel than any other drivers in the European Union
Government figures show that British motorists pay at least 12p a litre more than in other European countries.
According to the Department of Energy and Climate Change, fuel duty and VAT account for 66% of the total retail price at the pumps. In some other EU countries, these taxes make up only 42% of the retail price.
The cost of diesel is also highest in the UK, with the average price of a litre 106.6p, of which 70.1p goes on tax and duty.
The treasury collected £4.7 billion in fuel duty in the first three months of 2009.
Luke Bosdet, head of consumer affairs at the AA, said:
“Drivers are being hit at both ends, at the pump and through the added cost of getting goods to the shops. We are reaching the point where families cannot absorb any higher costs.
“The Government has become heavily reliant on fuel duty and other road taxes to prop up the public finances. Economic recovery will come through consumer spending. If you take more out of family budgets, there is less being spent in the High Street.’
The report from the Department of Energy says the average price of a litre of diesel in the UK in September was 106.6p. This compares with 73.5p in Bulgaria, the lowest in the EU.
Last night, hauliers urged Chancellor Alistair Darling to reduce the duty on diesel. The Road Haulage Association chief executive Geoff Dunning said:
“Any further fuel duty increase above the rate of inflation is a step backwards when the country is trying to recover from a recession.”
Sales of diesel engined vehicles have increasd as drivers look for more fuel-efficient cars, and in 2008 they accounted for 43% of all cars sold in Britain, compared with 27% in 2003.
Unleaded petrol is also at its highest price for 2009, according to the AA. The average price at the end of October was 107.14p a litre, beating the previous high of 107.03p.
