History
The 1908 Finance Act introduced a petrol duty in the UK, with the rate being set at 3d (£0.013) per UK gallon, bringing the price of a typical UK gallon to 1s 1½d (£5.03 as of 2012).
It was then abolished by the Finance Act 1919 after several years of steady petrol price rises and replaced by vehicle taxation, and the tax disc based on horsepower, after which the cost of petrol was about 4s (£6.81 as of 2012) per UK gallon.
In 1928, following market reductions in the cost of a UK gallon of fuel to about 1s 2½d (£2.7 as of 2012), the Government introduced a tax of 4d (£0.017) per UK gallon bringing the cost of a UK gallon of petrol to 1s 6¾d (£3.48 as of 2012).
In the 1993 Budget during the Major ministry Norman Lamont introduced a 10p rise and also a 'Fuel Price Escalator' whereby the cost of fuel would be increased annually by 3 per cent above inflation in future years; the Petroleum revenue tax was reduced in the same budget and later abolished. Kenneth Clarke, the new chancellor, increased the escalator to 5p in November of that year. These increases were introduced at a time of considerable change in government transport policy, and followed major UK road protests, including the M11 link road protest and the protest at Twyford Down. The escalator was increased in 6p per year in 1997 by the Gordon Brown, chancellor for the new Blair ministry.
The escalator was effectively cancelled by the Brown ministry follow severe disruption caused by the fuel tax protests in 2000. Since that time more cautious increases have been applied. A planned 3.02p/litre rise which was confirmed by the 2012 United Kingdom budget to come into effect on 1 August 2012 was later deferred until 1 January 2013 as short notice.
Read more about this topic: Hydrocarbon Oil Duty
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