War in Iran has cost drivers in the UK £4billion as a result of soaring oil prices, which have made their way to petrol and diesel pumps across the country.
New research shows that price hikes at the pumps since the start of the conflict in the Middle East have seen motorists fork out billions of pounds in additional costs.
Data from the RAC Foundation estimates that drivers have paid £1billion more for petrol and a staggering £3billion for diesel.
This is compared with average daily pump price rises between February and June, with last year's fuel consumption rates.
The Treasury is estimated to have received an additional £670million in VAT receipts from higher prices at the pumps.
Road fuel has a VAT rate of 20 per cent on top of the price of the product and fuel duty, which is currently levied at 52.95p per litre.
Prime Minister Sir Keir Starmer confirmed in May that the Government would extend the freeze on fuel duty until 2027, which was set to be rolled back gradually from September this year.
Steve Gooding, director of the RAC Foundation, noted that the Iranian war, and subsequent closure of the Strait of Hormuz, had cost drivers and businesses £360million a week in extra spending.
New research shows that petrol and diesel drivers have paid an extra £4billion in fuel costs since the start of the Iran war
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He added: "Whilst oil prices have eased back from their recent highs, pump prices are still far above where they were before the bombs started dropping and prices look set to stay elevated even if a sustainable peace deal is secured.
"Tens of millions of UK drivers will be paying the price of this war for weeks, or more likely months, to come."
Prices for diesel peaked on April 15, when drivers were paying 191.54p per litre, a massive 34.5 per cent rise compared to the price of fuel on February 28, when the conflict broke out.
While prices have fallen slightly to 177.89p per litre, drivers are still forking out 35.5p more than they were at the start of the conflict.
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Nationwide petrol and diesel prices recently reached the highest prices since the summer of 2022 | PASimilarly, petrol drivers saw the most expensive average cost of fuel on May 28 at 159.53p, over 20 per cent more than three months earlier.
At present, forecourts across the UK are selling petrol for 156.37p per litre, while diesel remains much more expensive at 177.89p.
Experts from the RAC have forecast that prices will continue to fall over the coming days and weeks, although drivers will still face high costs when filling up.
US President Donald Trump has announced a peace deal, which is understood to result in an end to attacks and the reopening of the Strait of Hormuz for oil and gas.
The Strait of Hormuz is one of the most important shipping routes in the world, especially for oil exports | GETTYMost expensive petrol prices
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