Drivers across the UK have seen their fuel bills climb sharply since the outbreak of conflict in Iran, with motorists collectively paying billions more at the pumps. New analysis shows the pain is not evenly spread, and the political debate over fuel duty and relief measures is intensifying as costs bite households and businesses.
How much extra motorists have been charged since the Iran conflict
Independent figures show motorists have paid an additional £2 billion in fuel costs since the fighting began. Analysts split that burden between fuel types.
Fuel-type breakdown
- Petrol users have faced roughly £500 million in extra charges.
- Diesel drivers have absorbed about £1.5 billion more.
The totals were calculated by the RAC Foundation. Their method used average daily pump prices alongside last year’s fuel consumption to estimate the extra sums paid by drivers.
Why diesel users have suffered the most
Diesel prices have risen steeply, hitting owners of diesel cars and many commercial fleets hard. Those running diesel vehicles often have limited options.
- Many diesel users are businesses that must pass higher costs to customers.
- Rural and long-haul drivers face bigger bills because of longer distances and fewer alternative refuelling options.
Experts warn the economic fallout from the conflict could persist for months after hostilities ease, keeping pump prices elevated.
Extra VAT fills the Treasury coffers amid rising costs
As pump prices climbed, so did tax receipts. The Treasury is estimated to have taken an extra £336 million in VAT from fuel sales during the same period.
Because VAT is charged as a percentage of the fuel price, higher pump rates translate directly into larger VAT returns for the government.
Fuel duty decisions adding pressure on household budgets
The UK’s temporary 5p per litre fuel duty cut was introduced after Russia’s 2022 invasion of Ukraine. That relief has partly softened the blow.
- Current government plans would roll the cut back in stages: a 1p reversal in September, 2p in December, and 2p in March 2027.
- Campaigners and some MPs are urging the Chancellor to keep the cut for longer.
- There are concerns a future administration could index fuel duty to inflation next April, increasing costs further.
Where drivers are paying the most
Some forecourts now report pump prices far above the national average. These locations top the lists for the country’s most expensive fuel.
Most expensive petrol stations
- Asda Tamworth Express, Tamworth, Staffordshire — 186.9p
- Asda Bothwell Express, Bothwell, South Lanarkshire — 186.9p
- Asda Stafford South Express, Stone, Staffordshire — 185.9p
- Asda Hamilton Express, Hamilton, South Lanarkshire — 185.9p
- Welcome Break Rotherham Forecourt, Rotherham, South Yorkshire — 185.9p
Most expensive diesel locations
- Bettyhill General Merchants, Thurso, Caithness — 214p
- Kinch Fuel Oils Ltd, Malmesbury, Wiltshire — 210p
- Lancaster North and South Service Area, Lancaster, Lancashire — 205.9p
- Tebay Services Northbound & Southbound, Penrith, Cumbria — 204.9p
- Welcome Break Rothwell, Kettering, Northamptonshire — 203.9p
Other developments affecting drivers and road users
- Bank-holiday traffic is forecast to surge, with up to 19 million journeys expected, increasing demand at forecourts.
- The UK’s electric vehicle fleet recently passed the two million milestone, aided by grants and policy incentives.
- An MOT warning has been issued for EV owners after gaps in pass-rate data raised safety concerns.
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