Fuel tax: As prices rise, could UK Government really cut it to help drivers?
2 years, 9 months ago

Fuel tax: As prices rise, could UK Government really cut it to help drivers?

Daily Mail  

With average petrol prices this week rising above £1.58-a-litre for the first time on record, filling up an average family car is now £19 more expensive than it was a year ago - and it's set to continue rising. VAT REDUCED TO 15% Reduce price to: 149.85p per litre Save drivers: 6.5p-a-litre Cut fill up price by: £3.58 VAT REDUCED TO 10% Reduce price to: 142.34p per litre Save drivers: 13p-a-litre Cut fill up price by: £7.71 VAT REDUCED TO 5% Reduce price to: 136.82p per litre Save drivers: 19.5p-a-litre Cut fill up price by: £10.75 VAT REMOVED Reduce price to: 130.31p per litre Save drivers: 26.1p-a-litre Cut fill up price by: £14.33 But should he be reducing fuel duty or lower VAT - which is essentially a 'tax on a tax' that's charged on both the product price and the duty - from 20 per cent for petrol and diesel? 'A cut to 15 per cent would save drivers 6.5p on petrol based on the current average of 156.37p whereas for diesel at an average of 162.28p the saving would be 7p per litre.' Based on Monday's average unleaded price, if Mr Sunak was to go even further and halve VAT to 10 per cent it would save drivers around 13p-a-litre. Lowering it further to 5 per cent would see drivers pay 19.5p less and deleting it entirely until oil prices soften would see motorists paying 26.1p less per litre, with the latter option cutting average unleaded prices to 130.27p-a-litre.

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