Analysis has revealed that pump prices skyrocketed at a record rate last month amid the ongoing Iran war, delivering a severe blow to millions of drivers across the nation. Average petrol prices surged by a substantial 20p per litre in March, while diesel soared by a staggering 40p per litre, marking the largest monthly increases ever recorded.
Unprecedented Cost Increases for Motorists
This dramatic escalation means the cost of filling up the average 55-litre tank in a family car rose by £11 for petrol and £22 for diesel between 1 and 31 March. In a further setback for families planning Easter getaways this weekend, prices are projected to continue spiralling upward, compounding financial pressures on households already grappling with rising living expenses.
Historical Context and Current Crisis
Last month's surges exceed even the monthly increases triggered by Russia's invasion of Ukraine in 2022, although current pump prices have not yet reached the peak levels witnessed during that earlier crisis. The scale of the hammering drivers have endured at the pumps over the past month stems directly from the Iran war that broke out on February 28, exacerbated by Tehran's retaliatory blockade of the Strait of Hormuz, which has severely squeezed Western oil supplies.
Separate data indicates that drivers have collectively shelled out nearly £600 million more than they would have if pump prices had remained at pre-conflict levels. Consequently, Chancellor Rachel Reeves has netted approximately £100 million in additional VAT receipts due to these higher prices. Drivers are now paying an average of £22 more to fill their tank with diesel and £11 more with petrol compared to before the Iran war commenced.
Industry Responses and Driver Advice
AA president Edmund King emphasised practical measures drivers can take, stating that adapting driving style and speed could save up to £10 per tank while enhancing safety. The motoring group specifically recommends reducing speed by 10 percent to improve fuel efficiency while maintaining traffic flow, and avoiding continuous harsh braking by anticipating traffic lights, roundabouts, and changing traffic conditions.
RAC spokesperson Simon Williams commented on the unprecedented nature of the situation, noting: 'March has been truly unprecedented – fuel prices have never risen this fast in a single month. While this represents the biggest pence-per-litre increase ever recorded monthly, it doesn't match the real-term impact of the 1973 oil crisis when barrel prices quadrupled. The increases drivers endured in March 2026 far exceed those seen during the early days of the Ukraine war.'
Political and Economic Implications
Despite growing calls for relief, the Labour government is refusing to axe its planned 5p per litre fuel duty hike scheduled to take effect this September, which would add another £3 to the cost of a fill-up. This decision persists even as Chancellor Reeves benefits from substantial VAT windfalls generated by the price surges.
Richard Smith, managing director of the Road Haulage Association, highlighted the broader economic impact, stating: 'Rising fuel prices continue to be a huge challenge for HGV, coach and van businesses that typically operate on thin margins. The knock-on effect will ripple through supply chains and households as costs are inevitably passed on. We've moved beyond review stages – our essential industry requires immediate action on fuel. Scrapping the duty hike isn't merely an industry concern; it's a national priority.'
Detailed Price Analysis and Comparisons
According to RAC analysis, unleaded petrol rose from 132.83p per litre to 152.83p last month, while diesel jumped from 142.38p to 182.77p. The previous record monthly increase for unleaded occurred in June 2022, when it soared by 16.6p per litre from 174.84p to 191.43p, eventually reaching a record average of 191.5p in July that year.
For diesel, the largest previous monthly jump was in March 2022, following Russia's invasion, when the fuel surged 22p per litre from 155.23p to 177.29p, later peaking at 199.09p per litre in June that year. With long-term RAC research indicating that eight in ten people remain dependent on their vehicles, these escalating costs are imposing significant tolls on both household budgets and business operations nationwide.
