http://www.order-order.com/2008/05/why-is-petrol-so-expensive-in-britain.html

Why is Petrol So Expensive in Britain?

Petrol is now nearly £6 a gallon, or some £1.15 a litre, of which 67p or some 57% goes to the Treasury. But that is only the beginning of how the Treasury makes more out of high petrol costs than OPEC and the oil companies combined.

The price differential between Britain and America is almost entirely due to taxation. Americans are enraged that they are paying $4 a gallon, they would probably have another revolution if they had to pay the equivalent of $12 a gallon as the British do. Even Europeans pay lower fuel taxes than the British, in some cases dramatically lower tax rates.

In the 2005 budget Gordon doubled the tax levy from 10% to 20% on oil explorers. At the time the Offshore Operators Association said it was "shocked" by the chancellor's decision. "At a single stroke, the Treasury has rewritten the industry's future. It will severely undermine business confidence," warned the OOA chief executive, Malcolm Webb, "This has been done not once but twice in the space of just three years and we fear that this time the North Sea will not be as resilient." And so it has proved.

Former oil trader Alan Duncan, the Tory Business Shadow, says Brown‘s actions over oil production are "not just laughable, but pitiful... he has completely lost the plot." The government has belatedly today exempted 30 unprofitable oil fields from Petroleum Revenue Tax and granted licenses to two new sites. It was Gordon himself who doubled the Petroleum Revenue Tax three years ago.

What bemuses Guido most is that in the midst of all these difficulties, Alistair Darling is still dithering and doesn't know if he wants to delay adding 2p a litre to fuel costs. He doesn't know? He really doesn't have a clue does he?

UPDATE : Osborne spotted the problem last year. 

They're actually considering raising fuel tax by another 2p "to save the environment". Welcome to utopian Britain where people are starting to stay in their town working on minimum wage because they can't afford to drive to decent work. The environment's very happy though.

I can't afford a car.

before it was because I am a young male and the insurance would be stupidly high, now it is due to that but as well as paying extra stupid amounts of money to run the car.

And the Americans complaining about paying 1/3rd of what we do is funny, admitedly it probably works out more like 1/2 when wages are taken into account, but still.

You know the article makes great points but I just couldn't get over the fact that the journalist was making himself sound like a biased ass.

because everything else is

My poor car is being drip fed petrol on a weekly basis....and considering it has a 1.6 engine, its not happy! I swear when i rev the engine it says 'bastard'

ferret1603 said: They're actually considering raising fuel tax by another 2p "to save the environment". Welcome to utopian Britain where people are starting to stay in their town working on minimum wage because they can't afford to drive to decent work. The environment's very happy though.

I still don't see how its going to "Save the enviroment", gotta be an excuse...

ferret1603 said: http://www.order-order.com/2008/05/why-is-petrol-so-expensive-in-britain.html Why is Petrol So Expensive in Britain? Petrol is now nearly £6 a gallon, or some £1.15 a litre, of which 67p or some 57% goes to the Treasury. But that is only the beginning of how the Treasury makes more out of high petrol costs than OPEC and the oil companies combined. The price differential between Britain and America is almost entirely due to taxation. Americans are enraged that they are paying $4 a gallon, they would probably have another revolution if they had to pay the equivalent of $12 a gallon as the British do. Even Europeans pay lower fuel taxes than the British, in some cases dramatically lower tax rates. In the 2005 budget Gordon doubled the tax levy from 10% to 20% on oil explorers. At the time the Offshore Operators Association said it was "shocked" by the chancellor's decision. "At a single stroke, the Treasury has rewritten the industry's future. It will severely undermine business confidence," warned the OOA chief executive, Malcolm Webb, "This has been done not once but twice in the space of just three years and we fear that this time the North Sea will not be as resilient." And so it has proved. Former oil trader Alan Duncan, the Tory Business Shadow, says Brown‘s actions over oil production are "not just laughable, but pitiful... he has completely lost the plot." The government has belatedly today exempted 30 unprofitable oil fields from Petroleum Revenue Tax and granted licenses to two new sites. It was Gordon himself who doubled the Petroleum Revenue Tax three years ago. What bemuses Guido most is that in the midst of all these difficulties, Alistair Darling is still dithering and doesn't know if he wants to delay adding 2p a litre to fuel costs. He doesn't know? He really doesn't have a clue does he? UPDATE : Osborne spotted the problem last year.

this article looked ok untill i saw this bit, now i just see bias bullsh*t.

ItalianBoyPhil said: ferret1603 said: They're actually considering raising fuel tax by another 2p "to save the environment". Welcome to utopian Britain where people are starting to stay in their town working on minimum wage because they can't afford to drive to decent work. The environment's very happy though. I still don't see how its going to "Save the enviroment", gotta be an excuse...

Naturally. There is no such thing as green tax, only tax.

Well they are saving the environment.

More expensive petrol means less petrol bought, meaning less fumes