Businesses are increasingly concerned about soaring fuel costs, with some now fearing fuel rationing could become a reality as petrol prices continue to climb. Fleet management specialist FleetCheck has warned that rising pump prices are fuelling anxiety across the transport sector, with businesses worried that the current pressures could last well into next year.
Healey's warning to retailers
The concerns follow Chancellor John Healey's announcement that the Government would keep a close eye on fuel retailers amid fears of profiteering. "We'll be watching closely for any suggestions that customers are being taken for a ride at the pump or the till," Mr Healey said last weekend. Fuel retailers have in the past faced accusations of “rocket and feather” pricing – when rapid price increases are followed by slower price cuts.
FleetCheck's perspective
Peter Golding, chief executive of FleetCheck, said operators are increasingly worried that fuel costs could continue to rise through the rest of 2026 and beyond. "Petrol prices are now at a high for 2026 while diesel isn't far behind and, with the possibility of a lasting ceasefire seemingly unlikely at this point in time, fleets are increasingly concerned about the likelihood of fuel price escalation into not just Q3 but Q4 and 2027," he said.
"They're anxious that, at a time when general fleet costs are under pressure, fuel prices may start to spiral. The fear is that, while oil producers are looking for alternative routes to alleviate supply issues, the current situation could persist for not just months but years." Mr Golding said many businesses have already implemented fuel-saving measures, leaving them with few options if prices continue to rise.
Potential for rationing
Fleet operators' concerns stem from fears that continued geopolitical tensions could disrupt fuel supplies as well as keep prices elevated. While there are currently no Government plans to introduce fuel rationing, some businesses worry that if supply shortages were to worsen, authorities could eventually be forced to consider measures to prioritise fuel for essential services.
At present, those concerns remain speculative. "Fleets that aren't carrying out the basics of fuel management have some wriggle room to make improvements but if you've ticked off all those boxes, you have little alternative but to pay higher pump prices and either see your margins eroded or pass on higher costs to customers. It's a genuine concern," Mr Golding said.
Impact on electric vehicles
He added that the latest price rises could strengthen the case for switching to electric vehicles. "Based on current prices, EV fuel costs per mile if you are able to home charge are around a quarter of petrol and diesel. With lease rates and purchase prices for EVs looking more competitive all the time, it strengthens the argument for electrification."
According to FleetCheck, some businesses have already tightened controls over fuel purchasing and introduced more detailed monitoring of fuel consumption in an effort to reduce costs.
Government reassurance
Writing in The Telegraph, Mr Healey sought to reassure motorists that regulators would act if evidence of unfair pricing emerged. "Companies' willingness to work with the Government throughout this crisis has been positive, and there has been no significant evidence of so-called price gouging, but I want to be blunt in reassuring the public that our regulators have the powers to clamp down on it if it happens," he wrote.
While there are currently no Government plans to introduce fuel rationing, the prospect of prolonged high prices is prompting growing concern among businesses that rely heavily on petrol and diesel vehicles.
