Daily briefing

Fuel Duty: The Tax on Every Mile You Drive

Fuel duty is one of the UK's oldest consumption taxes — charged on petrol and diesel before VAT is applied at the pump. Even when politicians announce a 'freeze', the effective burden can still rise through inflation and forecourt prices.

For a typical driver filling up twice a month, fuel duty and VAT together can add £800–£1,200 a year to motoring costs, depending on mileage and vehicle efficiency.

Because duty is set per litre rather than as a percentage, price spikes at the pump can feel like a double hit: higher wholesale costs plus the same fixed tax on every litre.