The chart provides a detailed breakdown of the costs associated with a litre of petrol priced at £1.28. A significant portion of the cost,£0.79, is attributed to taxes, which include VAT (£0.21) and Fuel Duty (£0.58). This highlights the substantial impact of taxation on petrol pricing. The next largest component is Oil Production & Refining, costing £0.36, which reflects the inherent expenses in extracting and processing crude oil. Retail Margin, at £0.11, indicates the profit margin for retailers, while Delivery & Distribution costs are minimal at £0.02. This breakdown underscores the complexity of petrol pricing, where taxes play a dominant role, overshadowing the actual production and distribution costs. The data suggests that any fluctuations in tax rates could significantly affect the overall price of petrol, more so than changes in production or distribution costs. This insight is crucial for policymakers and consumers alike, as it emphasizes the potential for tax policy to influence fuel affordability.
