UK motorists have spent an additional £2 billion on fuel since the surge in pump prices following the Iran conflict, as reported by the RAC Foundation. In just over a month, drivers have paid £500 million more for petrol and £1.5 billion more for diesel.
The average fuel prices have slightly decreased, with petrol at 156.98p per liter and diesel at 188.53p per liter. Prior to the conflict, petrol was priced at 132.83p per liter and diesel at 142.38p per liter.
Analysis reveals that the Treasury has gained over £336 million in additional VAT due to the pump price increases. The calculations are based on daily pump price fluctuations and last year’s fuel consumption rates.
Steve Gooding, the RAC Foundation’s director, expressed concern over the financial strain on motorists caused by the ongoing conflict in the Persian Gulf. Diesel vehicle owners have been most affected by the price hikes, potentially passing on costs to their customers.
The closure of the Strait of Hormuz has led to soaring petrol and diesel prices due to increased crude oil costs. Oil prices hit over $126 a barrel, the highest since 2022, amid fears of US actions against Iran following a breakdown in peace talks.
President Donald Trump mentioned no deal with Iran until nuclear commitments are made. UK households may face higher energy expenses this summer due to the conflict, with Ofgem set to announce new price cap levels for July.
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