Fuel prices boost Government coffers

* Tax increases raise 2.85 million a day * Further rise scheduled for April * Rising cost of oil is only part of problem...

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Jim Holder
09 January 2008

Fuel prices boost Government coffers

The Government is collecting an additional 2.85 million a day in fuel taxes compared to one year ago, according to research by the AA.

The revelation came as the motoring organisation pressed the Chancellor of the Exchequer, Alistair Darling, to freeze planned duty increases on fuel planned for April.

The AA highlighted that record fuel prices were not just the result of rising oil prices, but also increased taxes imposed by the Government.

Edmund King, president of the AA, said: 'The 2.35p-per-litre duty and VAT increase the Chancellor levied in October has contributed to prices now reaching these levels.'

The Government has responded by reiterating that fuel prices are actually 11% lower than in 1999 when inflation is taken into account.

Average petrol prices are now 103.62p a litre and diesel 108.58p. This time a year ago, petrol was 88.25p a litre and diesel 93.62p.