UK Exports Billions of Litres of Petrol to US Despite Local Record Pump Prices Find Big News

Drivers in the UK face a record of gasoline prices, but the country exports millions of liters of fuel every month to the US, where motorists pay a little more than half to fill their tanks.

Britain has the second highest gasoline price among 20 members, only French drivers who pay more. And the price of British gasoline is not only high, they rose at the fastest level in 17 years. In all Atlantic, drivers in the US also face their highest gas price in the records, but they still pay only about 60% of what Britain does.

So why is around 3 billion liters of gasoline, and components to make it, sent from England to the US this year? Almost entirely due to tax.

On June 6, the latest day where Globalpetrolprices.com issued a number, one liter of gasoline in the UK is worth £ 1.76, equivalent to $ 8.35 per gallon. That is compared with $ 5.04 per gallon in the US, or £ 1.06.

The flow in May from Britain to the US reached 1.85 million barrels, or 300 million liters, an increase of 15% from the previous month and highest since December, according to the Vortexa Ltd. Shipping Analysis company.

Britain is part of the international trade network both in raw and processed products, with cargo entry and shipping abroad to meet different fuel specifications in various parts of the world.

But a clearer reason occurs is that the value of gasoline for the manufacturer is not the same as the price paid by the driver. And the difference is tax.

There are two taxes on gasoline in the UK: Fuel and Tax added value. The task of fuel is levied at a fixed level, which is currently 52.95 PECE per liter on the lead gasoline after the government cuts it with 5 lititers in March. The level of assignment does not change with the price underlying fuel.

But the second tax, VAT, no. It was levied at the 20% level at the fuel price that underlying and fuel duty. That means the British driver pays taxes on taxes.