# Why are fuel prices higher in the UK?



## vlastan (May 6, 2002)

Interesting article from Esso/Exxon web site.

http://www.exxonmobil.co.uk/files/PA/UK/uk_pump_prices.pdf


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## DXN (May 18, 2002)

Government tax


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## phil (May 7, 2002)

When I was in Luxembourg last year I saw the biggest petrol station I've ever seen. It was on the german border and had 20-30 pumps, not including the lorry bit. And it was full of germans. 
Mind you, seeing as I was going into germany at the time, i only got about 200 miles out of that tank


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## GRANNY (Jun 18, 2002)

Because this is Rip off Britain


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## ag (Sep 12, 2002)

Because the UK government has, for decades, favoured a tax on spending, not on earning. That is why countries with lower fuel taxes invariably have greater rates of income tax and national insurance. This gives the individual the right to save more of his income if he so wishes than in other European countries.
For an example an employers contribution for national insurance is around 13% overall. In France, don't forget this is the part of your salary that you don't even know exists, it is up to 70% of the employees salary before tax.

Its all swings and roundabouts. We have a choice. We choose to spend or we don't. Either way public services in general are not as well funded as in continental Europe. To reduce the taxation on petrol, income tax would need to be increased.

This is why the disposable income of people in the UK is reasonable, despite low salaries. And why BMW make HALF of all its profits in this one small market!


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## Major Audi Parts Guru (May 7, 2002)

It's because we are being shafted by this Labour government [smiley=rifle.gif]


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## garyc (May 7, 2002)

I think economists call in inelasticity of demand to upward price changes.

Plus we are now the highest overall taxed (direct and indirect)nation in Europe bar none. BTW that includes Norway.


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## Antwerpman (Nov 4, 2002)

I agree with ag, if everybody stopped using their car tomorrow, the government would have to fill the huge hole in the budget because of the lost tax revenue in another way - either through increased VAT, income tax, corporate tax, etc.

Sad fact is that the cost of running the country has to come from somewhere....and that somewhere is poor souls like you.....

Now here in Belgium I pay 55% income in tax but my train fare for a comparable commute to my UK one is 50 euro instead of Â£250 for a month.

As for the 'highest taxes in europe', well there are many ways of measuring this and if you talk purely about tax then you may be right, but there are also social fund contributions which are HUGE here - they reckon to pay someone 1 euro costs the company an additional 3 in taxes and social contributions...so maybe the UK is not so bad after all

PS but cars are cheaper here


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