Originally posted by M5Power
Yes, we need a Euro to comment
Well, here it is:
Here petrol is 71.7p per litre, which @ 4.5l/gallon and $1.53/£ works out to $4.93 per gallon. Here you can buy petrol in two octane ratings: 95RON and 98RON, which is far higher than the sludge you guys buy in the US!
However, the sole reason for the cost is taxation. Here it works something like this:
Oil company: 25%
Government (excise duty): 52%
Government (VAT): 17.5%
Retailer: 5.5%
So as you can see, the government rakes in $3.40 per gallon of fuel sold. This is in addition to Vehicle Road Fund License (more honestly known as Car Tax) which is $160 - $240 per car, per year, depending on engine size. There is a 10% tax on car insurance, which is compulsory. Also, there is a 10% tax on new car registrations. All car parts and car labour is subject to the 17.5% VAT. And a Chrysler Neon 2.0 R/T costs something in the region of $21,500.
All in all the UK government rakes in something in the region of $54bn annually from the motorist, and I don't think that includes the VAT receipts either, it just represents the various taxes and duties. The government's transport budget is something in the region of $15bn.
Owning cars is an expensive business in the UK, and represents relatively poor value for money. It wouldn't be so bad, but the public transport system is garbage, even in a bit city like Edinburgh, and all the town planners and road builders are doing their best to slow traffic down, rather than to optimise the flow, and increase the throughput.
WOW!
