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Rising fuel costsnnThe cost of fuel is rocketing the average prices now 1.65 per litre for unleaded and going upwards.nnBut what makes up the price we pay at the pump if it’s not just profit.nnThe price of fuel can be seen as Taxes imposed by the Government, the costs of drilling, refining and transporting and the profit margins for fuel companiesnnThe price you pay at the pumps is governed by wholesale fuel prices which are affected by the global price of crude oil and supply and demand. If there is more demand or supply issues the prices will increase.nnThe pound to dollar exchange rate also affects the price of fuel as it is always purchased in dollars.nnDuty on fuel a tax charged by the Government is currently 57.95 and has been frozen at that since 2012. It stays the same per litre and is not affected by the rising prices as it is fixed.nnVat is added onto the price of the fuel at a rate of 20% so for every litre of fuel 57.95 fuel duty will have 11.59 of vat added onto the duty. nnSo at todays price of 1.65 per litre it will include 57.95 duty and 27.5 of vat a total of 85.45 in taxes nnWith rising fuel prices the government are set for a windfall from extra vat receipts where the motorist is set to struggle.nnTransport costs will increase and this will in turn increase the cost of our groceries adding to an increase in the cost of living and a further squeeze on our purses.