UK Fuel Price Breakdown Calculator | Petrol & Diesel Cost Analysis
Understand how UK fuel prices are calculated and what influences the cost at the pump
Understanding UK Fuel Prices
UK fuel prices are influenced by various factors, from global oil markets to government taxation. The price you see at the pump is a combination of wholesale costs, taxes, and operational expenses. Currently, about 45% of what you pay goes to the government in taxes.
Did you know? The UK has some of the highest fuel duties in Europe, fixed at 52.95 pence per litre since March 2022 when it was cut by 5p to help with the cost of living crisis.
Total Price: 139.85p per litre
Total Price: 146.93p per litre
Understanding Your Fuel Costs
Fuel Duty
52.95p per litre
Fuel duty is a fixed tax set by the UK government that applies to both petrol and diesel. This tax:
- Helps fund public services and infrastructure
- Encourages fuel efficiency and reduced emissions
- Hasn't changed since March 2022's 5p cut
- Makes up about 35% of the total fuel price
Value Added Tax (VAT)
Unleaded: 27.97p
Diesel: 29.39p
VAT is charged at 20% on the total price, including fuel duty. This means:
- You're effectively paying tax on tax
- VAT fluctuates with the total price
- Makes up about 16-17% of the pump price
- Applies to all components including retailer margin
Wholesale Cost
Unleaded: 25.34p
Diesel: 27.77p
The base cost of fuel is influenced by several global factors:
- Crude oil prices (Brent Crude benchmark)
- Exchange rates (GBP to USD)
- Refining costs and capacity
- Global supply and demand
- Seasonal demand variations
- International political events
Retailer Margin
Unleaded: 33.59p
Diesel: 36.82p
The retailer margin covers operational costs and profit:
- Storage and delivery costs
- Staff wages and training
- Facility maintenance
- Insurance and compliance costs
- Marketing and competition factors
- Location-based pricing strategies
Price Variations and Tips
Price Variations by Area
- Location (rural vs urban areas)
- Competition between local stations
- Supermarket vs independent retailers
- Distance from fuel terminals
- Local operating costs
Money-Saving Tips
- Use our website to find the cheapest fuel prices
- Consider supermarket fuel stations
- Avoid motorway service stations
- Maintain your vehicle properly
- Drive efficiently to reduce consumption
Glossary of Terms
Fuel Duty
An excise duty charged on most fuels by the UK government. This tax is included in the price you pay for fuel at the pump.
Value Added Tax (VAT)
A consumption tax charged at 20% on most goods and services in the UK, including fuel. It's calculated on the total price including fuel duty.
Retailer Margin
The portion of the fuel price that covers the retailer's operating costs and profit. This includes staff costs, maintenance, and business overheads.
Wholesale Price
The cost of fuel at the point of refinement, before additional expenses such as taxes, distribution costs, and retailer margins. This price is heavily influenced by global oil prices, refining costs, and other market factors.
Refining Costs
The expenses involved in transforming crude oil into usable fuels, such as petrol or diesel.
Brent Crude
A major benchmark for crude oil prices globally, used as a reference point for pricing in the UK.
OPEC
The Organization of the Petroleum Exporting Countries, which can influence crude oil prices by adjusting oil production among its member countries.
Official Sources
Government Resources
All information is based on current UK government data and regulations. Links open in a new tab and lead to official government websites.