Taxes across Europe

Taxes based on a 1,600cc car Denmark - �2,966 Finland - �1,753 Netherlands - �1,509 Norway - �1,400 Ireland - �1,380 Portugal - �1,272 France - �1,227 UK - �1,205 Luxembourg - �596

But the Conservatives have predicted that Chancellor Gordon Brown's pre-Budget statement next week will include concessions to hauliers and farmers.

In the interview, broadcast on BBC Radio 4's Broadcasting House programme on Sunday, Mr Blair said it was important to make the right choices for the economy.

He said: "We could, of course, cut more off the fuel duty if we reversed the extra investment we have announced on schools, hospitals, transport and the police. Government is about choices."

He said while fuel duties were high in Britain, the overall levels of tax were low.

Tories predict cuts

"I could get rid of fuel duty altogether - never mind the 26p the protesters are asking for - if we had French levels of tax or business tax from Europe or VAT rates from Europe," said Mr Blair.

But he did not rule out tax cuts altogether: "I'm not saying tax cuts are off the agenda, but they can't be at the expense of investment and they must have a good sound economic rationale."

However, Shadow Cabinet Office minister Andrew Lansley predicted that Wednesday's pre-Budget statement would include measures to placate hauliers and farmers, such as cuts in fuel duty or tax discs.

He told BBC One's Breakfast with Frost programme: "These are things that Gordon Brown would not have done were it not for the protests in September.

"All that is happening now is the government acknowledging that they raised taxes more than it was necessary to do and they have to give some of that money back."

Complex story

An independent survey, commissioned before the fuel crisis, found that motorists in seven countries, including France and Ireland, paid more tax than British drivers.

The survey added up petrol duty, car purchase taxes, car ownership taxes and road tolls to come up with a total figure.

Danish motorists came off worst with a total tax burden of �2,966 compared to �1,205 for UK drivers.

Scotland Office Minister Brian Wilson said: "In the UK there has been a history of taxing motorists through the pump rather than by less direct means.

"But, as this study proves beyond doubt, that is only one part of a much more complex story."