The Great Petrol Swindle; How the Government Rips Us Off

Average Petrol prices have breached the £1.00 a litre mark for the first time ever. According to industry researchers Catalist it is now 100.8p for a litre of petrol. The recent rises in petrol are due in part to the rising cost of oil - caused by supply concerns and also the weak dollar.

However, the real reason for the extortionate price we pay is due solely to the government. Duty was increased by 2p a litre from the beginning of last month. Further to all of these increases VAT is applicable, thus even more money is added to the total bill.

As can be seen in the diagram there is a whopping 65.3p of tax on a litre of petrol. With the retailer and distribution/production costs totalling 35p this is a massive 187% tax on petrol.

If we go one step further and look at what is often offered by major supermarkets such as Tesco and Sainsbury's - 5p off a litre of petrol, they are losing 1p per litre they sell. This is absolutely ridiculous to me.

What is needed is for the government to put a freeze on any increases in fuel duty for the next few years, and let the price stabilise. If not, I can see - and certainly hope for - another fuel protest in the making.