Sent this back to him;

Quoted from Ebay; "Actual postage cost: This is the final P&P cost charged. Consider what others in the market charge for delivery of the item being sold to ensure you remain competitive. Also be consistent with eBay policies for the postage and packaging charges for the category you are listing in." In the category I listed there was no Ebay pricing polices so I have broken no rules.
Ebay also ask when you bid on an item "do you agree with all the sellers terms and costs", as you bid then you did indeed agree. Lets see what Ebay and Paypal have to say.
Thanks