A1) The very latest fuel price is available in the interactive data section of our website. The table also includes an assessment of where fuel prices are expected to go over the next couple of weeks
Here you can also find weekly prices plotted over the past ten years.
For further historic prices click here (Department for Business, Energy & Industrial Strategy data).
A3) A chart showing both the wholesale (at the refinery gate) price of petrol and diesel and the retail (pump) price can be viewed here.
- Government duty and tax
- the cost of petrol and diesel on the open market
- the costs and profit of the wholesaler and retailer. (This is often referred to as the retail/ex-refinery spread). This covers the costs of transport to a storage terminal/depot, storage and distribution to a filling station; marketing and promotion costs; and the costs of operating the filling station and staff.
The United Kingdom Petroleum Industry Association (UKPIA) has produced an information leaflet on this matter. This can be viewed here.
The price per litre, excluding VAT, was 99.04p and the price, excluding both VAT and Fuel Duty, was 41.09p.
The average price of a litre of diesel petrol was 120.59. The price per litre, excluding VAT, was 100.49p and the price, excluding both VAT and Fuel Duty, was 42.54p.
The percentage of the pump price that is Fuel Duty and VAT can be viewed here.
For further historic prices click here (BEIS data).
A6) This chart plots the percentage of the fuel price that has been taxation over a 10 year rolling period.
Historical rates since 2001 are shown below.
Unleaded and Diesel
Duty rate per litre from 7 March 2001 45.82p
Duty rate per litre from 1 October 2003 47.10p
Duty rate per litre from 7 December 2006 48.35p
Duty rate per litre from 1 October 2007 50.35p
Duty rate per litre from 1 December 2008 52.35p
Duty rate per litre from 1 April 2009 54.19p
Duty rate per litre from 1 September 2009 56.19p
Duty rate per litre from 1 April 2010 57.19p
Duty rate per litre from 1 October 2010 58.19p
Duty rate per litre from 1 January 2011 58.95p
Duty rate per litre from 23 March 2011 57.95p
A8) Contrary to popular myth, the UK does not have the most expensive petrol prices in Europe. Click here to see where we rank.
However, the position is different when it comes to diesel where we are routinely in the top two of most expensive countries in the EU 28.
A9) This chart plots the pre-tax cost of unleaded petrol in each of the 28 EU member countries against the proportion of tax in the final pump price.
This chart plots the pre-tax cost of diesel against the proportion of tax in the final pump price.
As the crude oil fact sheet shows, demand for the product is driven by a number of factors - global economic activity; the oil intensity of certain sectors; future expectations regarding the availability of oil and its price; weather; and technological innovation.
A11) The very latest oil price is available in the interactive data section of our website.
Here you can also find the price of Brent crude over the past 12 months both in US dollars and pound sterling
Source: Financial Times
A13 Historically, demand for diesel has been growing in the UK and Europe, as well as globally. This has led to diesel supply in the UK becoming tighter in recent years and this has been reflected in wholesale prices and pump prices that are often higher than petrol prices.
There are a number of factors that influence prices. These broadly fall into the category of market or structural influences. Market factors include:-
- increased crude oil prices, with particular demand for "sweeter" lower sulphur crudes like those from the North Sea
- increased global demand for transport fuels, particularly diesel
- seasonal winter demand for heating gas oil which is similar to diesel and made from the same basic refinery components
- summer export of petrol to the USA
- short-term market factors relecting fuel specification changes, extreme cold weather or temporary supply problems
Structural influences include:-
- a growing imbalance in the UK and in most other EU countries between petrol and diesel production and demand
- fuel specification changes
The United Kingdom Petroleum Industry Association (UKPIA) has produced an information leaflet on this matter. This can be viewed here.
Other measures included:-
- Vehicle Excise Duty (VED) – From 1 April 2017, VED rates for cars, vans and motorcycles registered before April 2017 will increase by Retail Prices Index (RPI). HGV VED and Road User Levy will be frozen from 1 April 2017
- An Increase in the standard rate of Insurance Premium Tax to 12% from 1 June 2017
- £1.1 billion from the National Productivity Investment Fund (NPIF) to support local transport and £220 million to address pinch points on the national road network. Funds are also being committed from the NPIF to the development of driverless vehicles
- A commitment to improving air quality. The Government will consult on a detailed draft plan in the spring which will set out how the UK’s air quality goals will be achieved. Alongside this, the government will continue to explore the appropriate tax treatment for diesel vehicles, and will engage with stakeholders ahead of making any tax changes at Autumn Budget 2017
Source: Spring Budget 2017
A15) The taxes that are most directly linked to motoring are Vehicle Excise Duty (VED) and Fuel Duty. Latest figures show that VED generated around £6 billion in 2015, down 1 per cent from 2014 and Fuel Duty about £27 billion. Revenue from Fuel Duty more than tripled between 1987 and 2010 but has remained at £27 billion since then.
In addition to specific road user taxes, some transport expenditure is liable to VAT. In 2012, for private households, a total of £12.2 billion in VAT was raised through motorists buying, running and using their vehicles. (VAT on vehicle purchases raised £3.84 billion; VAT on fuel raised £5.64 billion; and £2.72 billion of VAT was also raised through road users buying other motoring-related goods and services).
Motorists are also taxed for the use of company cars as a benefit in kind. The Road Users’ Alliance estimated the proceeds of this tax to have been £3.7 billion in 2011/12. Motorists also pay an insurance premium tax when they insure their vehicle and it is estimated in 2012 vehicle insurance premium tax costs road users about £560 million a year.
Motorists also pay for driving tests, MOT vehicle tests, and parking and other fees and fines. As these are associated with either a service or penalty, they are not treated as taxes in the analysis undertaken by the RAC Foundation.
A17) Yes. Capital spending on local roads maintenance has been £1.8bn/year over the last two years – the lowest level since 2001/02 whilst local highways authority maintenance spending reduced by 15 per cent between 2009/10 and 2013/14. A further 35 per cent reduction in local highways maintenance budgets is estimated by the end of the decade.
A18) The amount raised in Fuel Duty and Vehicle Excise Duty each year from 1979, and the expenditure on roads in each corresponding year, can be viewed here.
Projections show the amount of Fuel Duty revenue currently stands at 1.7 per cent of GDP but will tumble to 1.1 per cent by 2029. Over the same period, VED revenue will fall by 0.3 per cent to 0.1 per cent. The total decline in motoring taxes is equivalent to £13.2bn a year in today's terms (from £38bn in 2010 to £25bn in 2029).
This forecast is part of detailed analysis of motoring taxation commissioned by the RAC Foundation from the Institute of Fiscal Studies (IFS). The conclusions of the IFS are contained in a report called Fuel for Thought.
A20) In 2012/13, cars were responsible for 63.9 per cent of motoring taxes; HGVs 18.0 per cent; LGVs 13.8 per cent; buses and coaches 3.5 per cent; motorcycles, scooters and mopeds 0.6 per cent; and other vehicles 0.2 per cent.
By contrast, passengers on local bus services cost the Treasury in subsidies 6.5p for every kilometre they travel; national rail passengers 8.5p per kilometre; and London Underground passengers 9.7p per kiilometre.
A22) The data chart that can be viewed here plots the percentage change in the price of various aspects of motoring over a rolling ten year period. The RPI cost of living index is also plotted over the same period.
The chart shows that over time, operational costs have generally risen significantly above the rate of inflation. However, the cost of buying a vehicle has not increased as much as inflation.
A23) In 2015/16, the average weekly household expenditure was £528.90. Transport had the highest average spending, at £72.70 per week, accounting for 14 per cent of household spending. This was just higher than the £72.50 per week spent on housing and fuel costs.
Different households have different transport requirements, with some relying on public transport and others more on cars. Not all households buy a vehicle in any given year, but it is a major expense for those that do. The transport expenditure figures are presented averaged across all households, whether they spent on a particular item or not.
On average, £30.80 of household expenditure on transport was spent on the operation of personal transport. This included £12.00 per week on petrol, £7.30 per week on diesel and £6.20 per week on repairs and servicing.
Households also spent on average £24.80 per week on the purchase of vehicles. This included £14.90 per week spent on buying second hand cars and vans and £8.70 per week spent on buying new cars and vans.
On average £17.20 per week was spent by households on other transport services, such as rail fares and air fares. This was lower than on either buying or fuelling vehicles. Spending on international air fares (£6.20 per week) was the highest, followed by rail and tube fares (£4.10 per week) and bus and coach fares (£1.30 per week).
A24) Official data analysed by the RAC Foundation suggests that around 960,000 of the very poorest car owning-households spent about a fifth of their disposable income on buying and running a vehicle in the last financial year.
These households (with the lowest tenth of disposable income) had a maximum weekly expenditure of £194 in 2015/16.
Of this £194 disposable income figure, the average household spent £42.50 (22%) per week on the purchase and operation of a car or van.
Source: RAC Foundation
A25) The data chart that can be viewed here plots over a rolling ten year period the percentage change in the cost of motoring and the cost of rail and bus fares. The RPI cost of living index is also plotted over the same period.
While motoring costs seem to have fallen in real terms, this disguises the fact that the (often discretionary) cost of buying a new or second hand vehicle has been falling whilst (non-discretionary) operating costs such as fuel and insurance have risen significantly quicker than inflation.
A26) Figures analysed by the RAC Foundation show that in 2015-16, English councils generated a combined "profit" of £756 million from their day to day, on and off street parking operations. This is another record surplus and a 9 per cent increase on the 2014-15 figure of £693 million. The overall rise in profits is a combination of increasing income (4 per cent up on the previous financial year) and decreasing costs (2 per cent down on the previous financial year).
The figures are calculated by adding up income from parking charges and penalty notices, then deducting running costs. The data comes from the statutory annual returns that councils make to the Department for Communities and Local Government.
Although not all councils made a large surplus, very few lose money on their parking activities. Just 49 (14 per cent) of the 353 parking authorities in England reported negative numbers.
A27) The authority with the largest surplus in 2015-16 was Westminster with a "profit" of £55.9 million. The five biggest earners were all London authorities with only Brighton and Nottingham breaking into a top ten dominated by councils in the capital.
A table detailing the parking operations surpluses for all English councils in 2015-16 can be seen here.
A28) Figures analysed by the RAC Foundation show that between them, local authorities in Scotland made an annual net surplus of £40.3 million from their parking activities in 2015-16.
This figure is 12 per cent higher than the previous financial year when the surplus was £36.1 million.
Between them these three local authorities generated 91 per cent of the total net surplus in Scotland.
A table detailing the parking operations surpluses for all Scottish councils in 2015-16 can be seen here.
A30) Figures analysed by the RAC Foundation show that between them, local authorities in Wales made an annual net surplus of £13.8 million from their parking activities in 2015/16.
The figure for 2015-16 was a 14 per cent increase on the £12.1 million surplus made in 2014-15.
A table detailing the parking operations surpluses for all Welsh councils in 2012-13 can be seen here.
A32) No. In a ruling at the High Court in London, Mrs Justice Lang said the 1984 Road Traffic Regulation Act “is not a fiscal measure and does not authorise the authority to use its powers to charge local residents for parking in order to raise surplus revenue for other transport purposes”.
On-street parking fees and penalty charges can only be set with the intention of “relieving or preventing congestion of traffic” and covering the cost of administering the schemes. Strict rules state that any surplus, with only minor exceptions, must be spent on contributing to the cost of off-street parking, public transport, road improvements and environmental improvements.“ But councils should not set out to raise money for these or any other purpose.
Outside the Capital, the ratio is 55:45.