British fuel tax highest in Europe

British drivers are more heavily taxed at the pump than any other motorists in Europe

British drivers pay a higher rate of tax on fuel than any other motorists in the European Union, according to a new study.

For every litre of unleaded petrol bought in the UK, 61 per cent of the pump price goes to the government as fuel duty and VAT along with 59 per cent of every litre of diesel.

The research – published as George Osborne prepares to deliver his budget later this month – shows that Britain taxes its drivers more heavily than any other EU nation despite the government having frozen fuel duty since March 2011.

Compared with the 27 other states in the EU, motorists in the UK pay the highest proportion of tax on diesel and the second highest for petrol, the study by the RAC Foundation found.

Only Swedish drivers came close, paying 62 per cent on a litre of unleaded – the highest rate overall – and 56 per cent on diesel.