I know petrol has duty & vat added to it but was wondering if the duty element is a percentage or an amount.
say petrol cost £1.175 per litre which is approximately = (32p raw material cost + duty of 68p) + VAT of 17.5% (17.5p)
Is the 68p calculated as a fixed amount or is it a percentage of the retailers charge?
I'm confused by the government when they say they will be putting 2p on a gallon. Does this mean 2p duty plus a further 17.5% of this or is the 2p duty calculated using a government set percentage levied on the raw material?
I'm intrigued as to how much effect oil going up to an all-time high really has at the pumps compared to low duty economies like the USA.