UK fuel tax cuts ‘paltry’ compared to rest of Europe
The UK’s fuel tax cuts are among the lowest in Europe, leading drivers to pay as much as 20p more per litre of petrol than drivers in France..
New RAC Europe data analysis shows the UK ranks 12th out of 13 European countries when it comes to temporary tax cuts to reduce the cost of petrol and diesel, following the “paltry” 5p duty cut announced at the Spring Statement in March.
Only one country – Luxembourg – has done less than the UK government to support drivers with rising petrol prices, with a duty cut in April worth the equivalent of 4.52p.
It’s a similar picture for diesel, with only Croatia doing less for its drivers than the UK, with a cut worth 4.5p.
In comparison, Germany took the equivalent of 25p a litre in tax off per litre of petrol on 1 June, Italy 21p, Portugal 16p and both Ireland and the Netherlands nearly 15p.
In addition, as an alternative to cutting fuel duty, governments of other countries in the EU have introduced fuel discounts at forecourt tills with Spain taking off 20 cents (about 17p) and France 18 cents (about 15p), while some fuel retailers including TotalEnergies in France and BP Spain have discounts running of up to 40 cents per litre (about 33p).
Of the remaining 15 EU states that haven’t taken steps to lower pump prices since March, all but six already charge less fuel duty than the UK even after the UK cut fuel duty by 5p in March’s Spring Statement.
Although UK pump prices have finally started to fall in recent days, the average price of a litre of both petrol and diesel is well above the current EU averages of 159p and 161p respectively. The UK is currently the joint-second most expensive country when it comes to the average cost of a litre of petrol (186p) – behind only Finland (190p) with Denmark also at 186p – and the second most expensive for diesel at 195p per litre, with only Sweden charging more (201p).
RAC fuel spokesman Simon Williams said: “This analysis lays bare an uncomfortable truth for the UK government – that compared to other European countries, it’s pretty much done the least to support drivers through the current period of record high fuel prices.”
The result is the UK being one of the most expensive places to fill up and putting it above other countries that have historically charged more for fuel than UK retailers do, including the Netherlands and France; UK drivers pay as much as 20p more per litre of petrol than drivers in the latter country.
Williams added: “Perhaps even more frustratingly, those countries that have not cut tax on fuel at all since March – including Greece and Austria – are still cheaper than the UK. At the opposite end of the spectrum, some other nations have done a huge amount with Portugal cutting duty an incredible seven times since March, and France and Spain both offering significant discounts on fuel at the checkout.”
The RAC also noted that some major oil companies and fuel retailers – including BP in Spain and Total in France – have decided to introduce their own discounts; something that’s unheard of here but will bring a pleasant surprise for UK drivers venturing abroad this summer.
The RAC also said that with the cost-of-living crisis showing no signs of coming to an end anytime soon, it’s frustrating that “repeated calls to the UK government for more support are falling on deaf ears”.
Williams continued: “UK pump prices might be finally starting to fall, but the reductions so far are too little and too late, given the massive wholesale price drops retailers have been benefiting from for nearly two months.
“Drivers, many of whom depend heavily on their vehicles, need more help and they need it now.”
By country – how different governments are supporting drivers with high pump prices
Countries ranked by petrol tax cuts since March:
Country |
Reduction in tax since March (UK pence equivalent) |
Rank by reduction in tax |
Average pump price per litre (UK pence equivalent) |
Rank by average price – highest to lowest |
Germany |
25.1 |
1 |
154 |
18 |
Italy |
21.2 |
2 |
164 |
10 |
Portugal |
16.2 |
3 |
161 |
12 |
Netherlands |
14.7 |
4 |
182 |
5 |
Ireland |
14.5 |
5 |
171 |
6 |
Sweden |
13.0 |
6 |
168 |
8 |
Belgium |
12.3 |
7 |
159 |
15 |
Croatia |
9.0 |
8 |
151 |
20 |
Cyprus |
5.9 |
9 |
152 |
19 |
Hungary |
5.3 |
10 |
106 |
28 |
Czech Republic |
5.2 |
11 |
160 |
14 |
United Kingdom |
5.0 |
12 |
186 |
2 |
Luxembourg |
4.5 |
13 |
145 |
23 |
Finland |
0.0 |
– |
190 |
1 |
Denmark |
0.0 |
– |
186 |
3 |
Greece |
0.0 |
– |
185 |
4 |
Austria |
0.0 |
– |
169 |
7 |
Spain** |
0.0 |
– |
166 |
9 |
France* |
0.0 |
– |
163 |
11 |
Latvia |
0.0 |
– |
161 |
13 |
Lithuania |
0.0 |
– |
158 |
16 |
Slovakia |
0.0 |
– |
155 |
17 |
Estonia |
0.0 |
– |
149 |
21 |
Romania |
0.0 |
– |
147 |
22 |
Slovenia |
0.0 |
– |
145 |
24 |
Bulgaria |
0.0 |
– |
144 |
25 |
Poland |
0.0 |
– |
131 |
26 |
Malta |
0.0 |
– |
114 |
27 |
Countries ranked by diesel tax cuts since March:
Country |
Reduction in tax since March (UK pence equivalent) |
Rank by reduction in tax |
Average pump price per litre (UK pence equivalent) |
Rank by average price – highest to lowest |
Italy |
21.2 |
1 |
161 |
15 |
Sweden |
16.4 |
2 |
201 |
1 |
Portugal |
15.0 |
3 |
136 |
25 |
Belgium |
12.3 |
4 |
170 |
6 |
Ireland |
11.0 |
5 |
170 |
7 |
Germany |
11.0 |
6 |
164 |
10 |
Netherlands |
9.4 |
7 |
169 |
8 |
Cyprus |
5.9 |
8 |
165 |
9 |
Luxembourg |
5.4 |
9 |
148 |
23 |
Hungary |
5.4 |
10 |
124 |
27 |
Czech Republic |
5.2 |
11 |
161 |
16 |
United Kingdom |
5.0 |
12 |
195 |
2 |
Croatia |
4.5 |
13 |
163 |
14 |
Finland |
0.0 |
– |
188 |
3 |
Denmark |
0.0 |
– |
175 |
4 |
Austria |
0.0 |
– |
171 |
5 |
France* |
0.0 |
– |
164 |
11 |
Greece |
0.0 |
– |
164 |
12 |
Spain** |
0.0 |
– |
164 |
13 |
Latvia |
0.0 |
– |
161 |
17 |
Romania |
0.0 |
– |
159 |
18 |
Lithuania |
0.0 |
– |
158 |
19 |
Slovakia |
0.0 |
– |
158 |
20 |
Slovenia |
0.0 |
– |
152 |
21 |
Bulgaria |
0.0 |
– |
150 |
22 |
Estonia |
0.0 |
– |
143 |
24 |
Poland |
0.0 |
– |
136 |
26 |
Malta |
0.0 |
– |
103 |
28 |
* Government fuel refund of 18 cents from April; in addition, fuel retailer TotalEnergies has taken 20 cents off its prices
** Government fuel discount of 20 cents from April; in addition retailers including BP Spain have introduced further discounts