Most of the price you pay at the pump for petrol is tax. Wat Tyler sets out some of the details. DECC statistics show that around two thirds of the pump price is the result of taxation. Those taxes are currently being hiked quite sharply, Jennifer Dunn wrote about the latest increase in Fuel Duty and Vehicle Excise Duty as part of our Budget coverage.
The big increase at the moment is due to the rise in the oil price, though. The problem is that global prices are rising and it is all priced in dollars, and it is getting more expensive for us to buy anything priced in dollars because the pound is weakening. Here is the price of Brent crude in dollars: