Fuel Tax the real mark-up

The tax man and the Chancellor don't talk about the tax mark-up in petrol prices since they prefer the smaller figure of the actual tax you pay in each litre.
 But when we talk of other goods like meals, car parts, services we really are interested in profit margin or mark-up and that is entirely different.

We have had to explain this idea of our Founder to no less a personage than Edmund King, AA President, who rudely told him he should go back to school. But then Edmund is in the Plumbing Insurance business now so what would he know about petrol anyway?


Since then we have also had to convince, one or two in the ABD and a senior broadcaster too. So clearly it is about time we explained the maths of it for all to see.
To keep it simple: Say a litre of petrol is a pound of which 70p is tax then yes, tax is 70% of a litre but that is not the tax mark-up. Clearly the garage could sell at just 30p without the tax and since the 70p is over two times 30 then the 70p is a 233% Mark-up on the 30p isn't it?

On an 84p tax from 130p litre that, by the same method, amounts to 182% Tax Mark-up.  So don't let them kid you that the mark-up is less.
This is what Mark-up is in your tank: 
     This is how far it stops you going!!                                      The ABD has a very good personal fuel tax calculator that works it out for you. http://www.abd.org.uk/fuel_tax_calculator.htm



 


Subpages (1): Tax from your tank graph
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