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Car tax changes: UK drivers pay highest fuel tax rates in Europe due to 'disparate' rule

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Fuel pump prices contain the largest proportion of tax compared to any other neighbouring country in what experts have called a “disparate” set of rules. Over 65 percent of fuel costs in the UK are made up of tax putting the UK at the top of the tree.

He said: “The EU was supposed to harmonise member nation’s economies.

“There could not be a more disparate set of fuel taxation regimes.

“How can Luxembourg tax diesel nearly 20 percent less than the UK?

“Even the powerhouse countries Germany and France, tax drivers less than dear old blighty too.

“The 10 years freeze in fuel duty, popular across all political parties, is at long last, gradually bringing the UK rate of fuel tax into line with Europe’s.

“We’ve waited for far too long to get even close to the 27 but still remain top of the European fuel tax take table.

“Unlike the UK, the developed world puts lower fuel duty onto diesel making [it] always cheaper than petrol.

“Those countries recognise the nation’s commercial heartbeat is haulage, distribution, and the explosion of white van deliveries.

“Instead, the Treasury is planning to reward our best route to economic recovery with a vicious fiscal kick in the logistics.”

The Treasury has previously predicted the freeze in fuel duty has saved drivers up to £1,200 since 20111.

However, they could have lost up to £100billion of potential extra revenue by maintaining the freeze.

FairFuelUK and CEBR analysis has previously predicted a 2p rise in fuel duty could generate between £250million and £470million in the short term.

However, this would dwindle to just £50million to £90million as more drivers make the switch to electric cars.



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