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Pud237 · 15-05-2008

Originally Posted by Alfa Vincent

True but I think the recent petrol rises are due to the price of oil not tax increases?

Duty is fixed (2p added every now and then), but the cost of oil rises and falls.

The price you pay is

(Cost per litre + Duty) x 1.175 (VAT)

So if the cost per litre (that the fuel companies charge) goes up, then the government also gets another 17.5% of that as extra VAT! And when the government sticks another 2p on duty, that also accrues another 17.5% VAT charge.. So while the oil companies might be shafting us, the government is shafting is two-fold!

15-05-2008	#12 (Post Link)
Pud237 AO Platinum Member Join Date: Apr 2006 Location: North Yorkshire Posts: 13,527 Member car: Alfa 156	Re: How To Reduce Petrol Costs Originally Posted by Alfa Vincent True but I think the recent petrol rises are due to the price of oil not tax increases? Duty is fixed (2p added every now and then), but the cost of oil rises and falls. The price you pay is (Cost per litre + Duty) x 1.175 (VAT) So if the cost per litre (that the fuel companies charge) goes up, then the government also gets another 17.5% of that as extra VAT! And when the government sticks another 2p on duty, that also accrues another 17.5% VAT charge.. So while the oil companies might be shafting us, the government is shafting is two-fold!