UK drivers are now facing average monthly fuel costs of £123 for a typical petrol vehicle, as the ongoing conflict in the Middle East continues to drive up prices at the pumps. According to recent data, petrol currently stands at 159.48p per litre, while diesel has reached 184.31p, marking significant increases since the beginning of 2026.
Rising Fuel Prices Since January
In January, the Express reported petrol at 134.97p per litre and diesel at 142.96p. As of May 29, petrol has risen by 55p and diesel by 38p. The average fuel efficiency of UK petrol cars is 36mpg, meaning it now costs 20p per mile to run a typical petrol car. With the average driver covering 7,400 miles annually (616 miles per month), the monthly cost amounts to £123.
Impact of the Middle East Conflict
The RAC Foundation calculated that since the conflict erupted on February 28, motorists have paid an extra half a billion pounds for petrol and £1.5 billion for diesel. The additional VAT collected by the Treasury due to higher fuel costs exceeds £336 million. VAT on road fuel is levied at 20% on top of the product cost and fuel duty, which is nearly 53p per litre.
Steve Gooding, director of the RAC Foundation, commented: "This is another unwelcome milestone for millions of motorists as the financial pain caused by the war in the Persian Gulf continues to mount up. As ministers themselves have warned, the economic effects of the conflict could last for months even after it has ended."
Diesel Drivers Hit Hardest
Owners of diesel vehicles have borne the largest brunt of the pump price hikes, many of whom are commercial users with little choice but to pass on costs to customers. Gooding added: "Whether we are drivers or not, we all end up feeling the pinch from sky-high forecourt fuel prices."
Government Response
In response to the surge, the government has extended the temporary fuel duty cut of 5p per litre until the end of 2026. Originally set to expire in September, the cut was confirmed by Chancellor Rachel Reeves amid mounting cost of living pressures from motorists.
