High fuel costs are triggered by the high level of fuel tax as well as increasing crude oil prices, according to a five-month investigation by the office of fair Trading (OFT).
The watchdog’s report on the UK road fuel sector, published on 30 January, specifies that the market is not dysfunctional as well as that competition is robust. It likewise argues that supermarkets’ growing share of the fuel retailing market has assisted consumers by keeping costs low.
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RAC foundation director professor Stephen Glaister said: “This report will provide only restricted comfort to the UK’s 35 million drivers who continue to pay near record costs at the pumps, however the OFT does determine the true cause of drivers’ misery – the Chancellor as well as crude oil prices. about 60 per cent of the pump cost is accounted for by fuel duty as well as VAT as well as we would now phone call on retailers to provide a breakdown on till receipts to show precisely what proportion the Exchequer is creaming off.”
The OFT discovered that, pre-tax, the UK has a few of the cheapest fuel costs in Europe. however in the 10 years from 2003 to 2012, costs at the pump increased from 76 pence per litre (ppl) to 136ppl for petrol as well as from 78ppl to 142ppl for diesel. This was triggered largely by an boost of almost 24ppl in tax as well as duty, as well as 33ppl in the expense of crude oil.