The RAC is renewing its call for the amount of money generated by
fuel duty at each forecourt fill-up to be shown clearly on
receipts by throwing its weight behind the Vehicle Fuel
(Publication of Tax Information) Bill being introduced by
MP today.
The changes outlined in the bill, which is promoted by
FairFuelUK, would enable motorists to see just how much tax they
are paying to the Treasury in both fuel duty and VAT every time
they buy fuel.
At the current price of 120p for a litre of unleaded, 57.95p is
fuel duty and 20p is VAT, making the cost of the fuel itself,
including oil company costs and retailer margin, just 42p. This
means the total tax take per fill-up stands at 65%. However, when
fuel prices were lower this time last year, the proportion paid
in taxation was even greater at around 75%.
Fuel duty currently raises more than £27bn** for the Treasury,
and with VAT on top of this, the total tax burden on the motorist
is closer to £35bn**.
Even though prices at the pumps are considerably lower than the
highs of 142p a litre for unleaded and 147p for diesel in April
2012, the price of fuel continues to be an issue of major concern
to motorists. Research from the RAC’s latest Report on Motoring*
found that 1 in 4 (24%) motorists still see the price of fuel as
a significant concern.
At the beginning of 2016 petrol and diesel were both widely
available for under £1 a litre – levels not seen since 2009. Now
however, the average price of a litre of unleaded has risen to
120.05p with diesel higher at 122.27p, which means it now costs
motorists around £10 more to fill up a typical 55-litre family
car with petrol and £12 extra for diesel car drivers. A motorist
buying 55 litres of petrol would pay a total of £66.03 – £23.15
for the fuel, £31.87 in duty and £11 in VAT.
RAC fuel spokesman Simon Williams said: “We have been calling for
some time for fuel receipts to show how much of each fill-up goes
to the Treasury so we wholeheartedly support the bill being put
forward today by MP.
“Motorists know how much Vehicle Excise Duty they have to pay to
keep their vehicle on the road so it seems ridiculous they have
no idea how much duty they are paying to the Treasury when they
fill their vehicles with fuel. This Bill really shouldn’t be
controversial, it is just a long overdue form of transparency
that everyone who drives a vehicle ought to be entitled to see.
“We would hope that MPs from all sides of the House will show
their support by allowing this Bill to progress and that the
Government takes notice of just how popular this measure would be
with motorists.”
Ends
If you are a journalist and would like further
information, please contact:
RAC press office: 01454 664
123 / press.enquiries@rac.co.uk
Notes to Editors
* The RAC Report on Motoring 2016 is based on a large-scale
internet survey carried out by Quadrangle on behalf of the RAC.
In total, Quadrangle interviewed 1,714 British motorists (i.e.
those who hold a current driving licence and drive at least once
a month).
** Figures based on RAC submission to Autumn Statement
