UK Pre-Tax Fuel Differential
£/L UK Pre-Tax Fuel Differential
Following demand recovery, the crude and pre-tax fuel prices increased back to pre- pandemic levels. Crude prices increased by 57.5% while indicative diesel and petrol pre-tax crack spreads increased by 4.8% and 14.7%, respectively. The Pre-Tax Crack Spread is an indicator used to measure the absolute pricing difference between the price of a barrel of crude oil and the price – before tax – of the petroleum products derived from it.
Crude Diesel
Petrol
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: BEIS / Bank of England / US EIA
Billion £ UK Road Fuels Duty and VAT Receipts
UK Road Fuel Duty and VAT Receipts
HMRC fuel taxation receipts increased by 13.5% in 2021, from £29.6 billion in 2020 to £33.6 billion in 2021. Road fuels duty made up the bulk of these receipts – 72%, down from 75% in 2020. As demand has not increased fully to pre-pandemic levels in 2021, receipts have similarly not yet seen a full increase.
Duty VAT
40
35
30
25
20
15
10
5
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10-Yr Avg
Source: HMRC / BEIS
49 | Statistical Review | 2022
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