Tax on petrol soars over Euro-average

Drivers have endured recent petrol tax increases up to five times higher than in other European countries, the AA said yesterday.

Since the Pre-Budget Report at the end of November 2008, the burden of fuel duty and VAT on a tank of petrol in Britain has gone up 11.46 per cent, compared with just 2.23 per cent in Austria, said the motoring organisation.

The average increase for 10 mainstream European countries, including France, Germany, and Holland, was 5.07 per cent.

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For diesel car owners in Britain, the fuel tax burden has increased 8.10 per cent – marginally lower than the 8.33 per cent in Ireland but well above the 2.89 per cent average for the 10 European countries.

The AA also pointed to the fact that from April 1, drivers in Britain will face earlier-announced petrol pump increases that could add another 2.5p a litre to the price of petrol and diesel.

AA president Edmund King said yesterday: "Our research shows that most other European countries have resisted such fuel tax rises over the past 15 months and they have also had to deal with the fallout from the credit crunch.

"The Treasury admitted in the last Pre-Budget Report that the impact of higher fuel prices on demand will lower fuel duty receipts in 2009/10 by 200m below forecast."

Mr King added that the planned April 1 increase "could do more harm than good to the public purse, economic recovery, hauliers and car owners".