Oil is getting scarcer and more expensive to find and produce, global demand for oil is increasing rapidly and crude oil prices are increasing globally.Within the UK, the Chancellor of the Exchequer is the one who is really profiting from higher oil prices and he also must take part of the blame for higher fuel prices. Each time the price of crude oil increases, the oil companies have to increase the price of petrol, diesel, oil and other petroleum products. The Government then charges Fuel Excise Duty on top of the cost of the fuel then also charges VAT at 17.5%2007 fuel duty (as of 1 October 2007) in the United Kingdom is: 50.35 pence per litre for ultra-low sulphur unleaded petrol/diesel 53.65 pence per litre for conventional unleaded petrol 56.94 pence per litre for conventional diesel 30.35 pence per litre for bio-diesel and bio ethanol - low tax to encourage consumer conversion 16.49 pence per kg for gas other than natural gas (LPG) 13.70 pence per kg for natural gas used as road fuel. 9.69 pence per litre for rebated gas oil (red diesel) 9.29 pence per litre for rebated fuel oil In addition VAT is charged at 17.5%, so the Government takes 53.6 pence in Fuel Duty plus 20 pence in VAT per litre of unleaded petrol costing 115 pence a litre. The British Government's share of a 115 pence litre of petrol is 73.60 pence, leaving 41.40 pence per litre for the petrol retailer, the distributor, the refiner, the crude oil tanker companies, the oil production companies, the oil service companies, the oil exploration companies and the governments and people of the countries that actually produce the oil.Fuel duty is due to go up by 2 pence per litre in October 2008.
David Giles ● 6268d