British drivers are facing the steepest rise in fuel costs in living memory as the ongoing conflict involving US and Israeli forces in Iran continues to send shockwaves through global oil markets. Petrol has climbed above 150p per litre for the first time since early 2024, and the motoring group RAC has described March 2026 as the most severe single-month price increase on record.
How Much Have Prices Risen?
Since the outbreak of the Iran war in late February 2026, petrol prices at UK forecourts have risen by approximately 17 pence per litre. For diesel, the increase has been even sharper — more than 34p per litre. These are not gradual, incremental changes: they represent a sudden structural shift in what it costs to fill a tank, triggered by the near-total closure of the Strait of Hormuz and the resulting disruption to approximately 20 percent of global oil supply.
For a typical family car with a 55-litre petrol tank, this translates to roughly £10.55 extra per fill compared to pre-conflict prices. Diesel car owners are paying an additional £21.35 per tank. The RAC Foundation has calculated that UK drivers have collectively paid around £300 million more at the pumps than they would have before the conflict — and the meter is still running.
Why Is the UK So Exposed?
Britain imports a significant proportion of its refined fuel products, and the price of those products is set in global wholesale markets that move directly in response to crude oil prices. When Brent crude surpassed $126 per barrel in early April — levels not seen since the post-pandemic spike — UK pump prices followed within weeks. The relationship between global oil prices and what British motorists pay is not immediate, but it is direct.
The UK is also particularly exposed on gas prices. The Strait of Hormuz normally accounts for around 20 percent of global liquefied natural gas supply, and unlike oil, there are few alternative supply routes and no significant strategic stockpiles. Household energy bills are expected to increase further later in 2026 as the gas price rises feed through to the energy price cap review.
The Panic-Buying Problem
Reports of queues at petrol stations and forecourt shortages have emerged in some parts of the UK, echoing scenes from the supply chain disruptions of 2021. While fuel supplies themselves remain adequate — the UK holds significant strategic reserves and has alternative supply routes — the psychological response to rapidly rising prices tends to create localised shortages as drivers fill up earlier and more frequently than usual.
The AA and RAC have both urged motorists not to panic-buy, noting that artificial demand spikes can make the situation worse. However, when prices are rising week on week, the rational decision for many drivers is precisely to fill up sooner rather than later.
Political Pressure on the Government
Prime Minister Keir Starmer is under growing pressure to intervene. Options discussed in political circles include a temporary cut to fuel duty — currently 52.95p per litre — or a windfall tax on oil company profits, which have surged as crude prices climb. The Treasury is reportedly resistant to fuel duty cuts, which would cost billions in lost revenue, and has pointed to the complexity of unwinding such cuts once implemented.
The Government’s preferred approach has been diplomatic: leading the 40-nation coalition to reopen the Strait of Hormuz and pushing for a ceasefire through international channels. Ministers argue that the fastest route to lower fuel prices is ending the conflict, not domestic tax intervention.
What Drivers Can Do
While geopolitical forces are largely beyond any individual’s control, there are practical steps drivers can take to reduce their fuel spend. Using price comparison apps like PetrolPrices.com to find the cheapest local forecourt can save several pence per litre. Supermarket fuel stations tend to undercut motorway services by a significant margin. Driving smoothly, reducing motorway speeds, and keeping tyres correctly inflated all improve fuel efficiency meaningfully. For those with flexible commuting arrangements, this Easter may be a moment to reassess how often driving is truly necessary.
The broader picture, however, remains bleak for motorists. Until the Strait of Hormuz reopens and global oil supply normalises, prices at the pump are unlikely to fall significantly. Britain’s drivers are, for now, absorbing the financial consequences of a conflict they had no hand in starting.