Fleet News

UK out on a limb over higher cost of diesel

THE UK is the only country in Europe where diesel prices exceed unleaded petrol prices at the pumps. This country continues to have the highest fuel prices in Europe, particularly for diesel, which is almost twice as expensive as some other European countries, jeopardising the future of the fuel in this country.

The higher price of diesel results from the Government's recent tax increases, which have increased its duty to 82.5% of the pump price, according to figures from the AA. This means that for every £10 spent on diesel only £1.75 actually goes on fuel. The tax on unleaded fuel is similarly high at 81.7%, again leaving under £2 spent on fuel for every £10 paid. If the tax was stripped away British drivers would pay less for fuel than anywhere else in Europe.

The cost to fleets of this additional tax is substantial, with a standard 100-car diesel fleet in the UK facing an annual bill of £112,200, compared to £65,144 in Spain, assuming each car drove 15,000 business miles and achieved 40mpg, thereby consuming 1,700 litres of diesel. The unleaded petrol bill for a 100 car fleet would be almost £50,000 higher than an identical fleet in Spain, assuming each car covers 15,000 business miles a year and achieves 35mpg, thereby using 1,950 litres of fuel. In this example the UK fleet's fuel bill would be £128,700, whereas the Spanish fleet only has to pay £83,655 - both prices include VAT.

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