Rising Fuel Costs 2026

  • J19wils's Avatar
    "The war in the Middle East is creating the largest supply disruption in the history of the global oil market" — The International Energy Agency (IEA), March 2026.

    The conflict in the Middle East has transitioned from a geopolitical concern into an immediate domestic energy crisis. With the effective closure of the Strait of Hormuz, oil prices have surged dramatically, with the resulting "conflict premium" passed directly on to UK consumers.

    According to the Royal Automobile Club (RAC), the average price of petrol now stands at 158.16p per litre and diesel at 191.11p, a significant increase from pre-conflict levels of 132.9p and 142.4p respectively. Since the onset of hostilities, UK drivers have already paid an additional £307 million simply to keep their vehicles moving.

    However, nearly 50% of the retail price of fuel is not determined by markets, but by taxation. Fuel Duty is currently levied at 52.95p per litre, with an additional 20% VAT applied to the total price. This effectively means that government tax receipts increase proportionally as fuel prices rise.

    As demonstrated following the 2022 Russian invasion of Ukraine, elevated energy costs place substantial strain on households, businesses, and supply chains. The House of Commons has already warned that the crisis is likely to drive higher inflation and interest rate increases, further penalising UK consumers for events beyond their control.

    Therefore, to mitigate the conflict's impact on UK consumers and businesses, we are calling on the UK Government to temporarily suspend VAT and Fuel Duty on fuel.

    This would:
    • Provide immediate cost relief
    • Protect businesses and supply chains
    • Reduce pressure on households

    Please sign the petition now!

    https://petition.parliament.uk/petitions/763674
  • 5 Replies

  • Drivingforfun's Avatar
    Another reasonable view could be to look at only the additional revenue they're raising – the war isn't their choice, but the extra tax they take is

    For every 6p the final pump price goes up, 1p is VAT (VAT is proportionate; fuel duty is fixed)

    In other words they're making 4.2p a litre on petrol and 8.2p a litre on diesel as a direct result of the price increases during the war

    I don't know the proportion of petrol and diesel sold, so I decided to just assume half and half which would mean the govt. has made £10.9m in "bonus" VAT as a direct result of the price increases during the war

    I imagine it would cost more than that amount in admin just to adjust the prices, so a more realistic outcome I can see is one off payment to some kind of good cause
  • Beelzebub's Avatar

    According to the Royal Automobile Club (RAC), the average price of petrol now stands at 158.16p per litre and diesel at 191.11p, a significant increase from pre-conflict levels of 132.9p and 142.4p respectively.

    I think you'll find that the quote comes from RAC Motoring Services, which has not been connected with the Royal Automobile Club for decades.
  • J19wils's Avatar
    @Beelzebub

    You’re completely correct, my apologies. The quote was from Simon Williams, my google research was mistaken.
  • NMNeil's Avatar
    Suspend a tax!!!
    What's the weather like on your home planet? 🤣
  • olduser's Avatar
    Another reasonable view could be to look at only the additional revenue they're raising – the war isn't their choice, but the extra tax they take is

    For every 6p the final pump price goes up, 1p is VAT (VAT is proportionate; fuel duty is fixed)

    In other words they're making 4.2p a litre on petrol and 8.2p a litre on diesel as a direct result of the price increases during the war

    I don't know the proportion of petrol and diesel sold, so I decided to just assume half and half which would mean the govt. has made £10.9m in "bonus" VAT as a direct result of the price increases during the war

    I imagine it would cost more than that amount in admin just to adjust the prices, so a more realistic outcome I can see is one off payment to some kind of good cause

    Is UK national debt a good cause?

    I think it is!
    Last edited by olduser; 20-04-26 at 12:12.