I'd argue there shouldn't be VAT on petrol at all. VAT is a tax levied on things that are considered 'luxuries' - i.e. there is no VAT on food, or books, or children's clothes among other things. Can anyone say they consider petrol a luxury? Does anyone buy it when they don't need it?

Jon

Yeah, my GF likes to splash out on those 'luxury' tampons. So to speak.

You could argue for VAT on petrol, but they currently charge VAT on the fuel duty too.
How can they charge Value Added Tax on something that has no value?

If fuel were to go up to £2 a litre it would stop being an issue of "this is costing me a lot of money" and become an issue of "I actually can't afford to put petrol in the tank".

It would affect everything, public transport, haulage, postal deliveries, price of food (and clothes, and other essential items).

In fact I would say that a price hike of that amount could bring britain to its knees. Never mind rising or falling economy, it would just keel over and die.

If the government didn't remove/reduce tax and fuel duty etc... then they would have a lot to do with any consequences. OK, they are not responsible for the price rise but they are the only people who can realistically control it.

Obviously it's not expensive to a lot of people. Driving home along the M53/M56 at ~70mph, I was still overtaken by a lot of cars - evidently their drivers aren't concerned about saving fuel.

I've noticed that, too. Most of my motorways journeys are at ±60mph, with only trucks slower than me. Yet I'm overtaken by everyone else.

I bet most of them are the first to moan about the price, but never stop to think how they could save fuel by more intelligent driving. It seems these days you simply must drive flat out at all times, come what may.

If it were £2 per litre my wife would quit her job. After childcare costs and the 30 mile round trip each day, she doesn't make much as it is.
The bus (or three busses each way) cost even more.