UK motorists have spent an additional £2 billion on fuel since the Iran conflict drove pump prices up, according to recent data from the RAC Foundation. The increase includes half a billion pounds for petrol and £1.5 billion for diesel in just over a month.
Before the Iran conflict in late February, the average petrol price was 132.83p per liter, and diesel was 142.38p per liter. Currently, petrol averages 156.98p per liter, and diesel stands at 188.53p per liter.
The analysis reveals that the Treasury has received over £336 million in additional VAT due to the price hikes. The figures were calculated based on daily pump price fluctuations and last year’s fuel consumption rates.
Steve Gooding, RAC Foundation’s director, expressed concerns over the financial burden on motorists due to the Persian Gulf conflict. He highlighted that diesel vehicle owners have been most affected by the price spikes, potentially impacting commercial users who may have to pass on costs to customers.
The surge in petrol and diesel prices is attributed to the closure of the Strait of Hormuz, causing a sharp rise in crude oil prices, which are essential for fuel production. Oil prices briefly surpassed $126 a barrel on Thursday, the highest since 2022.
As peace talks between the US and Iran face obstacles, concerns over US actions against Iran have escalated. UK households are also bracing for increased energy costs this summer, with Ofgem expected to announce higher price cap levels for July.
