Fuel Duties in the UK and Europe

Readers Question: Regarding fuel duties which one is correct:

1) The UK, France, Italy and Germany are all members of the EU and therefore charge a uniform EU rate of duty equal to 67% of the purchase price of each litre of unleaded petrol

No, there is no uniformity of tax rates across UK. In theory the EU is supposed to have tax harmonisation, but, it practise this doesn’t occur.

Rate of Fuel Tax in the UK
0.5152 per litre – roughly 50%, but, bear in mind there is also VAT on petrol and diesel at 17.5% (see petrol tax rates at HMRC)

The average price of fuel in the EU (source 2005 – outdated now but % differences are similar)

  • Netherlands 100p
  • UK 96p
  • Norway 94p
  • Belgium 95p
  • Germany 90p
  • France 85p
  • Greece 65p
  • USA 37.5p

(Data sourced – ERIC/USA Av August 2005) (link)

2) The rate of fuel duty levied in Japan is almost twice that charged in either Germany or France thus giving Japanese motor manufacturers a great incentive to produce small, efficient vehicles

I think this might be the one.

3) From the following list of countries: Italy, France, Germany and Canada, France has the highest fuel duty.

I think Germany has higher tax rates than France but I’m not sure.

Sorry can’t be definite.

By on April 28th, 2008