Fuel price crisis sees petrol and diesel drivers charged £2billion extra since start of Iran war

Felix Reeves
Thu, 30 Apr 2026 08:12:40 +0000

Drivers have been slapped with an extra £2billion in fuel costs since the start of the Iran war as petrol and diesel prices continue to remain expensive.

New analysis shows that soaring fuel prices have contributed to motorists paying £500million extra for petrol and a staggering £1.5billion in diesel costs.

While drivers have suffered from high costs at the pumps, the Treasury is estimated to have received £336million in extra VAT revenue.

The data, from the RAC Foundation, has been collated using average daily pump prices and last year's fuel consumption rate.

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Research from RAC Fuel Watch shows that prices remain high, with petrol drivers paying 157.08p per litre, while diesel costs 188.86p.

Despite the high costs, the RAC forecasts that petrol and diesel prices, including premium fuels, should fall in the near future.

When buying a litre of petrol or diesel, 20 per cent of the cost is VAT, while fuel duty and the wholesale price also play a role.

Steve Gooding, director of the RAC Foundation, said: "This is another unwelcome milestone for millions of motorists as the financial pain caused by the war in the Persian Gulf continues to mount up.

"As ministers themselves have warned, the economic effects of the conflict could last for months even after it has ended.

"The owners of diesel vehicles have borne the largest brunt of the pump price hikes, many of whom will be commercial users with little choice but to pass on their costs to their customers."

The expert noted that all Britons are "feeling the pinch" from expensive fuel prices, regardless of whether they own a car or not.

Later this year, the rate of fuel duty will increase from around 53p per litre to 58p, further hiking prices for hard-pressed drivers.

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There have been calls for the Chancellor to extend the 5p per litre fuel duty cut, which was first introduced after the Russian invasion of Ukraine in 2022.

Under present plans, Rachel Reeves will reverse the cut by 1p in September, 2p in December and a further 2p in March 2027.

There are fears that Labour could decide to hike fuel duty by inflation in April next year, becoming the first Government to do so in more than a decade.

GB News has compiled the most expensive petrol and diesel prices from around the UK using the Government's Fuel Finder tool.

Most expensive petrol prices

Asda Tamworth Express Petrol, Tamworth, Staffordshire (B77 5PS) - 186.9p

Asda Bothwell Express Petrol, Bothwell, South Lanarkshire (G71 8BG) - 186.9p

Asda Stafford South Express Petrol, Stone, Staffordshire (ST15 0EU) - 185.9p

Asda Hamilton Express Petrol, Hamilton, South Lanarkshire (ML3 6JW) - 185.9p

Welcome Break Rotherham Forecourt, Rotherham, South Yorkshire (S60 4EQ) - 185.9p

Most expensive diesel prices

Bettyhill General Merchants, Thurso, Caithness (KW14 7SP) - 214p

Kinch Fuel Oils Ltd, Malmesbury, Wiltshire (SN16 9QH) - 210p

Lancaster North and South Service Area, Lancaster, Lancashire (LA2 9DU) - 205.9p

Tebay Services Northbound and Southbound, Penrith, Cumbria (CA10 3SB) - 204.9p

Welcome Break Rothwell, Kettering, Northamptonshire (NN14 6AA) - 203.9p