The graph that shows where your money goes when you fill up with gas Business

According to the RAC, nearly half the cost of filling a car with a £100 tank of petrol is now spent on paying VAT and fuel duty.

The cost of the £46 tax compares to the £45 that comes from the wholesale price of petrol, which skyrocketed after the war in Ukraine and Western boycotts of Russian supplies drove up oil prices.

It has prompted fresh calls for Chancellor Rishi Sunak to ease the burden on millions of drivers by cutting fuel taxes again, after cutting fuel taxes by 5p a liter in March.

Simon Williams, the RAC’s fuel spokesman, said: ‘It’s a really gloomy day today for drivers whose petrol is now crossing the very depressing £100 per tank threshold.

“With RAC research showing that up to eight in 10 people depend on their cars, many must be wondering if further government financial support will be forthcoming.

“A further reduction in duties or a temporary reduction in VAT would go a long way to helping drivers, especially those on low incomes who have no choice but to drive.”

As of Thursday, the RAC said a typical liter of unleaded petrol now costs 182.31 pence. A liter of diesel costs 188.05p.

Of the price of unleaded, around 81.4 pence comes from the wholesale price of petrol. Up to 10% of the fuel itself is also biofuel, which adds 12.49p to the total.

The retailer then takes a profit of 3.38 pence and the delivery and oil company receives 1.7 pence.

Fuel tax is then levied at a flat rate of 52.95p, bringing the cumulative total to 151.92p.

Finally, VAT is then levied at 20% of the total, adding an additional 30.39p.

This brings the total to 182.31p – and means fuel tax and VAT account for 29% and 17% of the cost respectively.