Petrol prices - a breakdown
Recommend on Google+
Last week I blogged about the prospect of increasing petrol prices. I have just found some useful information on the breakdown of the price at the pump. This would be really useful for teaching indirect taxes.
The figures below are based on a litre of unleaded petrol at 132.9p
Fuel duty makes up 57.95p of the cost.
VAT makes up 22.15p.
The actual fuel itself costs 47.8p per litre
The retailer makes on average 5p.
This means that in theory, if there was no fuel duty on unleaded, the price at the pump would be around 75p per litre.
If there was no VAT on petrol on top of this, the price would be reduced to roughly 53p.
The ONS found that the average UK household spent £677 on fuel duties in 2009/10. it found the richest 20 per cent of households spent £1,062 on petrol taxes, compared with £365 for the poorest 20 per cent.
This means the poorest 20 per cent of households are paying almost twice as much of their income in duties on fuel than the richest 20 per cent. This is a great example of a regressive tax.
blog comments powered by Disqus
The paper book v’s the E book [3 May 2011]
Demand and supply in action - Easter Eggs [21 Mar 2011]
Great inflation resources [15 Feb 2011]
VAT - great teaching resource [24 Jan 2011]
Petrol prices - where does the money go [24 Jan 2011]
Will the pound shop have to change its name? [18 Jan 2011]
VAT rise from midnight [4 Jan 2011]
An end to cheap clothing? [7 Dec 2010]
Innocent smoothies and VAT [23 Nov 2010]
Food prices on the rise again [8 Feb 2010]
Have you noticed the rise in VAT? [8 Jan 2010]
Tags
activity, advertising, affordability, alistair darling, anti-competitive behaviour, anti-dumping, apple, appreciation, aqa gcse economics, articles, asia, balance of payments, balance of trade, bank of england, banks, basic economic problem, basket of goods, beat the teacher, benefits, bidet, birthrate, borrowing, budget, budget deficit, budget surplus, business growth, business objectives, capacity, capital, car industry, car manufacturing, cash cow, china, chocolate, christmas trees, class task, cocoa, competition, competition commission, competition in action, competitive markets, complements, conditions of supply, confidence, congestion, conspicuous consumption, construction, consumer confidence, consumer spending, consumers, cost of living, costs, costs of production, costs, revenues and profits, cpi, credit crunch, cross price elasticity of demand, currency, data, data response, debt, deficit, delicious data, demand, demand and supply, demand and supply in action, demand for labour, demerit good, demerit goods, depreciation, derived demand, diagram, diagrams, diseconomies of scale, dollar, double dip, double-dip, downturn, easyjet, economic growth, economic gw, economic policies, economics, economies of scale, economy, elasticity, elasticity of supply, employment, end of term activity, enterprise, eu, euro, eurozone, exam advice, exam help, exam practice, exam style questions, exam technique, excess demand, exchange rate,All tags for the GCSE Economics Blog
