The Cost of Filling Up

The Chancellor has just confirmed that the 5% tax relief on fuel will remain.

So how much does it actually cost to fill up and the tax you pay on petrol and diesel.

Assuming a price of 147.28 pence per litre for petrol and 166,05 pence per litre for diesel the percentage tax on fuel is 53% and 49% respectively.  Which equates to 78.05 pence and 81.35 pence fuel tax per litre respectively.

However you have to “earn” the money to pay for the fuel which, of course, is taxed. Being a Jaguar owner I assume you are on the 40% income tax band.

Thus a 60 litre tank of petrol will cost £ 88.37 of which fuel tax/vat at 53% equals £46.84. But to pay £88.37 you will need to “earn” £150 which  at 40% income tax leaves you with £90 nett to pay for your fuel. You have now paid a total of income tax plus fuel tax/vat of £106.84 to fill up !!!!!

Apologies if I have just ruined your breakfast but will you now go electric ?

OK, a stupid question!