UK motorists have spent an extra £2 billion on fuel since the Iran conflict caused fuel prices to surge, according to new data from the RAC Foundation. In just over a month, drivers have shelled out an additional £500 million for petrol and £1.5 billion for diesel.
The average petrol price on Thursday stood at 156.98p per liter, down from a peak of 158.31p, while diesel was at 188.53p per liter, down from 191.54p. Prior to the Iran conflict in late February, petrol was priced at 132.83p per liter and diesel at 142.38p per liter.
Analysis reveals that the Treasury has received over £336 million in additional VAT due to the increased pump prices, based on daily price rises and fuel consumption rates from last year. Steve Gooding, director of the RAC Foundation, expressed concerns over the financial strain on motorists and warned of prolonged economic effects even after the conflict ends.
The closure of the Strait of Hormuz has led to a surge in petrol and diesel prices as crude oil prices spiked. The latest oil price increase saw prices surpass $126 (£94) a barrel, the highest since 2022. Amid concerns of new US strikes on Iran, oil prices slightly dropped to around $121 (£89) a barrel.
As peace talks between the US and Iran falter, UK households are anticipated to face elevated energy costs this summer. Ofgem is expected to announce the next price cap level for July in the coming month.
