UK fuel tax higher than Europe's

UK drivers have endured recent petrol tax increases up to five times higher than in other European countries, a new reported has found.

Since the Pre-Budget Report at the end of November 2008, the burden of fuel duty and VAT on a tank of petrol in the UK has gone up 11.46%, compared with just 2.23% in Austria, the AA said.

The average increase for 10 mainstream European countries, including France, Germany, and Holland, was 5.07%, the group added.

For UK diesel car owners, the fuel tax burden has increased 8.10% - marginally lower than the 8.33% in Ireland but well above the 2.89% average for the 10 European countries.

The AA also pointed to the fact that from April 1, UK drivers will face earlier-announced petrol pump increases that could add another 2.5p a litre to the price of petrol and diesel.

AA president Edmund King said: "Our research shows that most other European countries have resisted such fuel tax hikes over the past 15 months, and they have also had to deal with the fallout from the credit crunch.

"The Treasury admitted in the last Pre-Budget Report that the impact of higher fuel prices on demand will lower fuel duty receipts in 2009/10 by £0.2 billion below forecast."

Mr King added that the planned April 1 increase "could do more harm than good to the public purse, economic recovery, hauliers and car owners".