Fuel tax 'jacking up petrol costs'

15/07/11

By Dan Smith

For each pound they pay filling their cars at the pump, motorists are spending 62 per cent on VAT and fuel duty, new figures suggest.

Research from the Institute of Advanced Motorists (IAM) shows that just 38 pence of drivers' petrol pump costs actually go on the fuel itself.

The organisation's Motoring Taxation and Public Spending report also found that the proportion of tax added to fuel was just 47 per cent 20 years ago.

When oil prices were not as great, the tax percentage went as high as 75 per cent in the year 2000.

Despite these statistics, the IAM noted that public transport and roads only benefit from around a third of the tax revenues which are collected from the country's drivers.

Neil Greig, IAM director of policy and research, described this situation as "plainly unfair".

He added: "Motorists are also paying the price as Britain's potholed and increasingly dangerous roads take their toll, damaging tyres, wheels, steering and suspension."