too, The majority of the cost is tax, both fuel duty and VAT, and VAT on fuel duty.
Fuel duty is 47.10p per litre for both petrol and diesel. VAT on the fuel duty = 8.2425p per litre for both.
On top of this is VAT on the fuel itself.
At 85p per litre at the pumps, this equates to just over 25p per litre of actual fuel cost, and just under 60p per litre duty and VAT (237% of the base fuel cost or 70.3% of the total cost)
Fuel protests starting 5470Brimstone Translation: Accurate history snipped (and here reinstated, much to the PP's chagrin): Petrol has not been cheap since about 1973. Labour put VAT (eventually...
Of the 25p per litre, you have 1. the cost of the fuel itself 2. the cost of transporting it to the refinery 3. the cost of refining it 4. the cost of transporting the fuel to the garages 5. profit for the garage.
Brent Crude is roughly $55 per barrel (or roughly 159 litres), which equates to 18.1 pence per litre (using current figures for the exchange rate). I looked and found unleaded petrol trading prices as well, and they finished today at 22.7pence per litre.
So, from that original 25p per litre, there's not an awful lot of profit for the garage owners left, at most around 2 pence per litre or therabouts! 60 pence per litre is VAT and duty from an 85p per litre pump price.
