Fuel prices are increasing - petrol and diesel
Fuel duty is 52.95 p (after the 5p cut)
Then there is 20% VAT added onto that cost
So as fuel prices increase, the VAT they get from fuel increases
About 30p at a price of £1.80 per litre
(It was 22p at a price of £1.30 per litre)
Of course, fuel consumption might go down as the cost of fuel increases - but it will be interesting to see if the Government VAT take from fuel is increasing.
A cut to VAT would make a difference to consumers who are struggling.