Why is the fuel price not dropping?
The biggest chunk of the price of fuel is, you guessed it, tax. You pay 57.95p per litre on both petrol and diesel.
That’s not all. You also pay standard rate VAT at 20pc.
So, even if the fuel was free, no charge was made for delivery and retailers didn’t take a margin, it would still cost nearly 70p a litre to fill up, based on today’s pump prices, all of which would go straight to the Treasury, according to the RAC.
In 2014, on average a full 62pc of the pump price of petrol and diesel in the UK was made up of excise duty and VAT, according to the UK Petroleum Industry Association.