Only 38 pence of every pound motorists spend at the pump is on fuel – the rest is government fuel duty and VAT.
Only 38 pence of every pound motorists spend at the pump is on fuel – the rest is government fuel duty and VAT, according to the Institute of Advanced Motorists. The Motoring Taxation and Public Spending Report also found that the percentage of tax charged on fuel increased from 47% in 1980 - to a mighty 75% in 2000. It then fell to 62% in 2010 due to high oil prices. Furthermore, the Government only spends about one-third of its fuel tax revenue on roads and local public transport. This equates to £12,752 million.The Director of Policy and Research for the Institute of Advanced Motorists, Neil Greig, said: 'Using so little of the taxes motorists pay on road upkeep is plainly unfair. Motorists are also paying the price as Britain’s potholed - and increasingly dangerous - roads take their toll damaging tyres, wheels, steering and suspension'. During 2010, the cost of petrol rose by 27% and diesel prices increased by 18%. This continued in the first half of 2011. Petrol prices have, so far, risen by 8% and diesel now costs a further 12%. Despite this, according to the Institute of Advanced Motorists, the amount paid per-car owner has fallen as the increase in traffic has spread the tax burden.