If a litre of unleaded petrol costs 85p, 21.7p will be the production costs and profit, about 51p will be duty and 12.5p will be VAT on top of all that. The government forecasts that fuel duties will rise from 21.6bn in the 1998-99 financial year to 23.3bn in the year to next April. Fuel facts 32bn will be raised from oil, fuel and road taxes this year. On taking office the new chancellor, Gordon Brown, increased the fuel escalator further and put 3p on a litre of petrol in his first budget.
British petrol is the most expensive in Europe.
There is also road tax, or Vehicle Excise Duty, which costs 155 per year for most cars, or 100 for cars with engines below 1,100 cc. Charge all foreign truckers a fee to use British roads, to ensure that UK registered vehicles are not disadvantaged. Brown heads off winter of discontent Links to more Pre budget report stories are at the foot of the page.