Tax paid on petrol reaches a record high Its latest report shows that, after gradually falling over the summer, pump prices are close to levels seen in April, when a typical litre of petrol cost 141.7p. The library's researchers report that this year's higher prices have mainly been caused by rising global oil prices, forced up by political tensions in the Middle East, especially over Iran's nuclear programme. However, tax has contributed to longer-term rises: "The price increases since late 2010 have been as a consequence of rising oil prices, the weaker pound and increases in duty and VAT," the report said. The library reported that overall, British fuel duty was the second highest in the European Union. According to data from the European Commission, British diesel is the most expensive in the EU, "despite relatively low pre-tax prices," the report said. Petrol prices are the fourth highest in the EU, after Greece, the Netherlands and Italy. Quentin Willson, of FairFuelUK, said the rules governing fuel tax were unfair and harmful. VAT on fuel was especially unjustified, he said, because it rises in tandem with underlying fuel prices, meaning motorists were "hit twice" by any rises. The current level of taxes on petrol and diesel is a burden on the UK economy and it would be insanity to impose another 3p tax on fuel next year, Mr Willson said. The Treasury declined to discuss the Chancellor's Autumn Statement, to be delivered on Dec 5, but pointed out that ministers had cancelled or postponed several previous duty increases. A spokesman said: "The Government recognises that the rising price of petrol is a significant part of households" day-to-day spending. Since coming to office the Government has listened to the concerns of motorists about high pump prices and acted. Fuel is now 10p a litre lower than under the previous government's plans.