Tax 'makes up 62% of petrol cost'

Fuel duty and VAT accounts for more than 60% of the cost of petrol, according to a report.

IAM said just 38p in the pound covers the cost of the petrol, while 62% goes on taxes.

However it is lower than in 2000, when tax paid at the pump stood at 75%. In 1980 it was just 47%.

However the Government spends just £12,752 of its total tax income on roads and public transport despite receiving £43, 8585 from road users.

Petrol prices went up by 27% in 2010 while diesel increased by 18%. This year has seen them increase by 8% and 12% respectively.

Neil Greig, IAM director of policy and research, said: "Using so little of the taxes motorists pay on road upkeep is plainly unfair.

"Motorists are also paying the price as Britain's potholed and increasingly dangerous roads take their toll, damaging tyres, wheels, steering and suspension."

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