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Well its good for the ecology and probably wont harm the economy too much as i'll bet most people are cutting down on non-essential driving.
Actually, as painful as high fuel prices are, it is good that we have fuel tax here in the UK because it does give our government a significant amount of leverage where concerns controlling the price of petrol.
On a litre (costing us £1.20 or approx $2.40) about 70 pence (approx $1.40) is made up of fuel tax and VAT (value added tax). Of the remainder, only a small proportion is the fuel itself.
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