Average price of Diesel near me at the moment is 129.9p / litre, subtract 57.95p / litre tax leaves you 71.95p / litre, convert that to UK gallons and that's 327p / gallon. With a 60mpg car that works out to 5.45p / mile.
You did, sort of... VAT on road fuel is charged on the full amount - i.e. on the TAX as well!! So the net cost of a 1.30 litre of fuel is 1.30/1.2-57.95 i.e. 50.4p. Mine does 10.5 miles / litre (47.5mpg) so that is 4.8p/mile net. If you get 4.5 miles / kWh average in the Ion at 12.5p/kWh (with 5% VAT) = 2.64p/mile net. OK....that's pretty close to 2!
I presume that Road fuel has been VATed since VAT started (1973) - domestic 'fuel' was zero rated, but added in early 90's to huge outcry - EU rules now forbid its removal (see the 'tampon tax'). I suspect that we will get pay per mile and it will be applied to both EV and ICE (possibly with road fuel reduction) - but this may only apply to new cars from a certain date that are black box equipped - big brother will be watching you!!Mandrake wrote: ↑18 Dec 2019, 12:32You bring up a good point though that residential electricity is only 5% VAT vs 20% for petrol and Diesel... as I'm not originally from here I don't know what the historical reasons for that are and whether that's likely to change in future ?
I see that some businesses are charged 20% VAT on electricity - I wonder if that applies to public charging providers and might explain some of the additional cost of public charging ?