Fleet World Workshop Tools
Car Tax Calculator
CO2 Calculator
Car Comparator
Van Tax Calculator
EV Car Comparator
BiK Rates Company Car Tax

Tax take on diesel at highest level in over a decade

That’s according to figures from the RAC Foundation, which is calling on the Government not to raise fuel duty in next week’s Budget.

The data for the RAC Foundation shows that 74% of what drivers pay for diesel and petrol at the pumps is now comprised of tax – the highest levels since April 2004 and January 2009 respectively. 

For 2015 fuel duty income was £27.4bn – up £0.3bn on 2014 as a result of more road fuel being sold. 

Steve Gooding, director of the RAC Foundation, said: “It is true motorists have benefited recently from falling oil prices but the biggest driver of what we pay at the pumps is not OPEC or the big oil companies but the Chancellor.

“In the unlikely event fuel retailers wanted to give petrol and diesel away for free they couldn’t. Motorists would still pay 69.5p a litre on the forecourts: 57.95p in fuel duty and 11.6p in VAT.

“With the price of oil forecast to stay low the Chancellor might now be tempted to look at increasing fuel duty. We hope he does not. The cost of transport is already the biggest household expense bar none and a significant cost for business too. Will raising duty really get us – individuals and the economy – where we need to be?”

For more of the latest industry news, click here.

Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.