British motorists are shouldering millions in extra fuel costs due to the ongoing conflict in the Middle East, with petrol and diesel prices continuing to climb, according to recent research from the RAC Foundation.
As of the latest data, petrol costs an average of 157.71p per litre, while diesel stands at 190.62p per litre. Since the outbreak of war in Iran on 28 February, petrol prices have risen by roughly 0.7p per day and diesel by 1.2p per day, prompting warnings of further increases.
Research indicates that drivers have already incurred an additional £920 million in fuel costs since the conflict began. Estimates suggest this total could surpass £1 billion over the Easter bank holiday weekend. The Treasury has benefited from an unexpected VAT windfall, with Chancellor Rachel Reeves collecting up to £170 million from drivers between 28 February and early April, according to projections.
The Labour government has faced calls to cut fuel duty to ease pressure on households, though officials say they are monitoring the situation closely. A 5p-per-litre cut introduced in response to the Russian invasion of Ukraine is set to be reversed later this year, with incremental increases planned through to March 2027.
Despite the easing of hostilities and the reopening of the Strait of Hormuz, tankers have yet to resume full operations through the route, keeping global oil and gas prices elevated.
Steve Gooding described the continuing high costs as a “war premium” and warned that even if oil prices begin to decline, they remain well above pre-conflict levels of $70 (£52) per barrel.
Simon Williams added that motorists should not expect a significant short-term fall in pump prices, though some independent stations may be able to pass on reductions more quickly than the larger chains.
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