UK drivers hit by £500 fuel 'surcharge'


British motorists pay up to £500 more a year on fuel than drivers in other parts of Europe because of tax, a consumer survey reveals today.

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Taxing times: British motorists pay up to £500 a year more on fuel because of tax

On average, drivers shell out up to £350 a year more on petrol and diesel than those in other major European countries.

The average Briton pays £1,752 a year for fuel compared with £1,409 by the average Spaniard - a difference of £343. But motorists with larger cars can easily pay more than £500 a year extra.

We have paid 20% more for fuel, on average since 2000, says the poll by consumer price comparison website Currently that figure has come down to 12%.

British drivers still pay the highest level of tax on diesel and the third highest level on petrol out of the major European countries.

Some 59p of every £1 spent at the pumps goes in to Treasury coffers.

British drivers spend £6.2m an hour on petrol or £55bn a year - of which £33bn goes to the Chancellor of the Exchequer.

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The Treasury's windfall swells as fuel prices rise because VAT is imposed both on the cost of the petrol and on fuel duty - a 'tax on a tax'.

When Britons were paying around £119p a litre for petrol last month, Spanish drivers were only being charged 96p, the survey found. Without the extra tax, UK fuel would cost around 50p a litre.

In Spain, only 48% of the price of petrol bought goes to the Government in tax, compared with 56% in Italy, 59% in Britain, 61% in France and 62% in Germany. For diesel, British drivers face the highest level of taxation at 57%.

The uSwitch report says: 'Every time a British driver fills up, they are paying an average of 12% more than their European neighbours.

'In fact, since the year 2000, UK motorists have consistently paid 20% more for their petrol and diesel compared to drivers from the other four largest European countries. By contrast - the Spanish pay 16% less for petrol than anyone else at just 96p per litre.'

The report notes that in the last year alone, the price of petrol in the UK has risen 17% to an average of 119.5p per litre from 98p per litre: 'These high prices have left UK consumers paying 7% - or 8p - more per litre for petrol and 17% (23p) more for diesel than their European neighbours.'

The report adds: 'Not only does Spain boast a better quality of life with low taxation, cheaper essential goods such as energy and food, and the most hours of sunshine, Spanish drivers also have the cheapest fuel bills.'

Mark Monteiro of said: 'Although the Government has postponed the 2p rise in fuel duty until October, consumers still have a right to feel hard done by.

'Price cuts of up to 4p per litre at the forecourts of some of our largest supermarkets have been a step in the right direction.

'Unfortunately, supermarkets have a small market share in petrol retail, so we need to see larger brands follow suit.'

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UK drivers hit by £500 fuel 'surcharge'

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