Fall in treasury fuel duty take

14/11/11

By Shaun Teale

Hard-pressed motorists may not believe it, but the amount the Government gets from petrol pump prices went down in the last decade.

The Government's share dropped from 81 per cent in 2001/02 to 66 per cent in 2009/10, the Office for National Statistics (ONS) said.

But this was still a higher proportion than the low of 62 per cent in 2008/09, the ONS said.

It added that the Government's share of the pump price has dropped because, although petrol duty has been rising, it has not kept up with overall fuel price rises.

The ONS data also showed that the poorest 20 per cent of households are paying almost twice as much of their income in duties on fuel than the richest 20 per cent.

In 2009/10, the poorest 20 per cent paid 3.5 of their disposable income on duty, compared with only 1.8% for the top 20 per cent. Overall, the average UK household spent 2.3 per cent of its disposable income on duties on fuel.

However, in cash terms, the richest 20 per cent of households paid almost three times the amount paid by the bottom 20 per cent.

In 2009/10 the richest 20 per cent of households spent £1,062 on petrol taxes, compared with £365 for the poorest 20 per cent. Overall, the average UK household spent £677 on duties on fuel in 2009/10.