Cost of Iran oil crisis on millions of UK drivers reaches ‘unwelcome milestone’
The cost of the Iran oil crisis on UK drivers has reached a significant level, with motorists having paid an additional £2 billion collectively for petrol and diesel since the conflict began in February 2026. Analysis by the RAC Foundation attributes the rise to higher pump prices driven by disruptions in oil supply through the Strait of Hormuz. The UK Treasury has also collected over £336 million in additional VAT due to increased fuel prices.
- ▪Since the Middle East conflict began on February 28, UK drivers have paid an extra £500 million for petrol and £1.5 billion for diesel.
- ▪The RAC Foundation calculated the added costs based on average daily pump price increases and previous fuel consumption rates.
- ▪VAT on road fuel is 20%, applied to both the product price and fuel duty, which is nearly 53p per litre.
- ▪Diesel users, including many commercial operators, have been disproportionately affected by the price hikes.
- ▪Oil prices rose sharply due to Iran restricting tanker passage through the Strait of Hormuz, a key global oil transit route.
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NewsUKHome NewsCost of Iran oil crisis on millions of UK drivers reaches ‘unwelcome milestone’New analysis shows motorists have been paying an additional half a billion pounds for petrol and £1.5 billion for dieselNeil Lancefield Thursday 30 April 2026 10:47 BSTBookmarkCommentsGo to commentsBookmark popoverRemoved from bookmarksClose popover{"translations":{"comments":"Go to comments","share":"Share","copyLink":"Copy link","bookmark":"Bookmark","removeBookmark":"Remove bookmark"},"showComments":true,"showBookmark":true,"articleId":"b2967943","articleMeta":{"url":"https://www.independent.co.uk/news/uk/home-news/iran-war-oil-fuel-prices-rac-b2967943.html","title":"Cost of Iran oil crisis on millions of UK drivers reaches ‘unwelcome milestone’"}}Related: Finance expert reveals simple ways to…
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