How much of the petrol price is tax?

The tax share of petrol price varies significantly by country. In the UK, approximately 55–60% of the pump price is tax (fuel duty 57.95p/litre + 20% VAT). In Germany, approximately 57% is tax (Energiesteuer 65.45 ct/l + 19% VAT + nEHS carbon levy). In France, approximately 56% is tax (TICPE ~68 ct/l + 20% VAT). In the US, only about 15–17% is tax (federal 18.4 cents/gallon + state tax averaging 30 cents/gallon). The crude oil and refining cost is similar globally — the difference in pump prices is almost entirely taxes.

What percentage of petrol price is crude oil?

The crude oil cost typically represents 30–50% of the petrol pump price depending on the country's tax structure. In high-tax European markets, crude accounts for only 20–30% of the pump price because taxes are so large in absolute terms. In low-tax markets (US, Middle East), crude oil is 40–60% of the pump price. At Brent crude of $80/barrel (approximately $0.50/litre of crude), the refined petrol cost from crude is roughly €0.55–0.65/litre after refining — before taxes are added.

Why do petrol prices change daily but taxes don't?

Petrol prices at the pump fluctuate because the wholesale (pre-tax) component changes with crude oil benchmark prices, refining margins, and wholesale market conditions. Taxes are fixed amounts per litre (excise duty) or fixed percentage rates (VAT) that do not change with the oil price. Because excise duty is a fixed amount in most countries, the percentage tax share appears to fall when crude prices are high and rise when crude prices are low — even though the absolute tax per litre is unchanged.

Petrol Price Per Litre Explained: What You Are Really Paying For

Published 1 April 2026 · Updated 15 October 2026

When you pay £1.48 per litre for petrol in the UK or €1.78 in Germany, where does that money actually go? The answer surprises most drivers: the majority goes to the government in taxes, not to oil companies. This guide breaks down every component of the petrol price per litre with real 2026 numbers.

For live pump prices globally, use the fuel price explorer. For the fuller version of this topic, see our detailed guide on what makes up the price at the pump.

The five components of petrol price per litre

Component	What it is	Who gets it	Does it change with crude?
Crude oil cost	Cost of the raw petroleum extracted from the ground	Oil producers (Saudi Aramco, ExxonMobil, etc.)	Yes — daily
Refining margin	Cost of converting crude to petrol + refinery profit	Refineries	Partly — crack spread fluctuates
Distribution & retail	Transport to depot, forecourt costs, retail margin	Fuel distributors, petrol station operators	Slightly
Excise duty	Fixed government tax per litre	Government	No — fixed amount
VAT	Percentage tax on the total pump price	Government	Yes — rises/falls with price

Crude oil: the global commodity base

Crude oil is traded globally in US dollars per barrel. One barrel = 159 litres. At Brent crude of $80/barrel:

$80 ÷ 159 litres = $0.503/litre crude cost
At EUR/USD 1.10: approximately €0.457/litre
A barrel of crude yields roughly 47% petrol (approximately 75 litres), so crude cost allocated to petrol: $80 ÷ 75 ≈ $1.07/litre of petrol equivalent

The crude-to-petrol allocation accounts for the fact that a barrel yields many products (diesel, jet fuel, LPG, etc.) — accounting conventions vary, but a reasonable estimate is that crude represents €0.50–0.65/litre of the petrol wholesale cost. For the barrel definition, see our barrel of oil glossary entry.

Refining margin: the crack spread

The refining margin is the difference between the value of refined products (petrol, diesel, jet fuel) and the cost of crude oil. This "crack spread" is a key variable — it can range from near-zero during refinery oversupply to $30–40/barrel during supply crunches.

In 2026, typical European gasoline refining margins are approximately $8–14/barrel (~5–9 ct/litre), reflecting adequate refinery capacity after capacity rationalisation post-COVID. High complexity refineries earn higher margins from the same crude. For refinery economics, see our refinery glossary entry and the crack spread glossary entry.

Taxes: the dominant component in Europe

In most European countries, taxes account for over half the pump price. There are up to three tax layers:

Excise duty (fuel duty): A fixed amount per litre, set by national law. Does not vary with the oil price. UK: 57.95p/l; Germany: 65.45 ct/l; France: ~68 ct/l. See our excise duty entry.
VAT: Applied as a percentage on the full pump price (including excise). UK: 20%; Germany: 19%; France: 20%; Italy: 22%. Because it is percentage-based, VAT rises in absolute terms when crude prices are high. See our VAT on fuel entry.
Carbon levy: A relatively new layer in Germany (nEHS: ~7 ct/l on petrol), UK (via ETS for refinery costs), Canada (federal carbon levy: ~17 ct/l on petrol in 2026), and Nordic countries.

Country-by-country breakdown (2026)

Component	UK (pence/l)	Germany (ct/l)	France (ct/l)	USA (cents/gal ÷ 3.785)
Crude + wholesale	~38p	~56 ct	~56 ct	~55¢/l
Refining + distribution	~12p	~10 ct	~10 ct	~8¢/l
Retail margin	~5p	~6 ct	~5 ct	~5¢/l
Excise/duty	57.95p	65.45 ct	~68 ct	~13¢/l (federal + avg state)
Carbon levy	—	~7 ct	~4 ct	—
VAT	~28p (20%)	~28 ct (19%)	~30 ct (20%)	~3¢/l (sales tax varies)
Total pump price	~148p	~178 ct	~177 ct	~91¢/l (~$3.45/gal)
Tax share	~58%	~57%	~57%	~18%

The US-Europe comparison is striking: the crude + refining + distribution cost per litre is broadly similar ($0.68 vs €0.72). The difference is entirely taxes: European governments take ~57% of the pump price; the US takes ~18%.

Why do petrol prices change?

Day-to-day pump price changes are driven by the wholesale (pre-tax) component — crude oil price movements and refining margin fluctuations. Taxes are fixed (excise) or lag (VAT adjusts as price changes, but the rate is set). The most important drivers of pump price changes:

Crude oil benchmarks (Brent, WTI): The primary variable. A $10/bbl crude move → approximately 6–8 ct/l pump price change, with a 2–6 week lag.
Currency (EUR/USD, GBP/USD): Crude is priced in USD. A weakening domestic currency increases the local-currency cost of crude even if the dollar price is flat.
Refining margins: Can move independently of crude. Planned or unplanned refinery outages, seasonal demand shifts (winter diesel demand), and new product specifications all affect crack spreads.
Government tax changes: Excise duty changes (UK fuel duty freeze, German nEHS increases) have a direct immediate effect on pump prices.

For the detailed transmission mechanism, see our guide on oil price to pump price lag. For how to reduce your fuel costs given these price drivers, see our fuel saving guide.

Frequently asked questions

How much of the petrol price is tax? In the UK, ~58% (fuel duty 57.95p + VAT 20%). In Germany, ~57% (Energiesteuer 65.45 ct + carbon levy 7 ct + VAT 19%). In France, ~57% (TICPE ~68 ct + carbon levy + VAT 20%). In the US, only ~18% (federal 18.4 cents/gallon + state average ~30 cents/gallon). The crude oil and refining cost is broadly similar globally — taxes explain the price gap between countries.: In the UK, ~58% (fuel duty 57.95p + VAT 20%). In Germany, ~57% (Energiesteuer 65.45 ct + carbon levy 7 ct + VAT 19%). In France, ~57% (TICPE ~68 ct + carbon levy + VAT 20%). In the US, only ~18% (federal 18.4 cents/gallon + state average ~30 cents/gallon). The crude oil and refining cost is broadly similar globally — taxes explain the price gap between countries.
What percentage of petrol price is crude oil? Crude oil represents approximately 25–35% of the pump price in high-tax European markets, and 40–55% in low-tax markets like the US. At $80/barrel Brent, the crude cost per litre of petrol is roughly €0.55–0.65/litre — similar across countries. High European taxes compress crude's percentage share, making it appear smaller even though the absolute crude cost is the same.: Crude oil represents approximately 25–35% of the pump price in high-tax European markets, and 40–55% in low-tax markets like the US. At $80/barrel Brent, the crude cost per litre of petrol is roughly €0.55–0.65/litre — similar across countries. High European taxes compress crude's percentage share, making it appear smaller even though the absolute crude cost is the same.
Why do petrol prices change daily but taxes don't? The wholesale (pre-tax) component changes with daily crude oil prices, refining margins, and exchange rates. Excise duty is a fixed amount per litre set by legislation — it only changes when parliament changes the rate. VAT is percentage-based so it moves with the total price, but the rate is fixed. Day-to-day pump price moves are almost entirely driven by the wholesale component, which feeds through in 2–6 weeks.: The wholesale (pre-tax) component changes with daily crude oil prices, refining margins, and exchange rates. Excise duty is a fixed amount per litre set by legislation — it only changes when parliament changes the rate. VAT is percentage-based so it moves with the total price, but the rate is fixed. Day-to-day pump price moves are almost entirely driven by the wholesale component, which feeds through in 2–6 weeks.