§ Mr. Skeetasked the Chancellor of the Exchequer if he will give in pence per gallon (a) the Excise duty on petrol and (b) the value added tax and express the total as a percentage of the purchase price of four-star petrol.
§ Mr. Peter ReesThe new rate of Excise duty on petrol is 8.1p a litre, equivalent to about 36.82p a gallon. The VAT element on a gallon of petrol depends on the price assumed. When the full effect of the Budget changes is taken into account, the pump price of four-star petrol is likely to range from £1.05 a gallon upwards. On the basis of £1.05, VAT at 15 per cent. will be 13.7p and the combined incidence of duty and VAT will be about 48.1 per cent.