At the time of writing this article the level of fuel duty was set at 47.1p/litre of unleaded petrol. The retail price includes VAT charged at a rate of 17.5%. If the retail price of unleaded petrol...

At the time of writing this article the level of fuel duty was set at 47.1p/litre of unleaded petrol. The retail price includes VAT charged at a rate of 17.5%. If the retail price of unleaded petrol in a UK garage is set at 90p/litre:

1. How much is the total level of tax paid to the UK Treasury on a litre of petrol?

Hint: work out the VAT payable/litre and then add this to the fuel duty.

2. If it costs the garage 23.2p/litre to buy the petrol what is the profit per litre. In addition calculate the percentage margin.