UK retail sales returned to growth last month as they were pushed higher by motorists stocking up on fuel as prices shot higher because of the Iran war, according to official figures.
March rebound driven by fuel demand
The Office for National Statistics (ONS) said the total volume of retail sales, which measures the quantity bought, rose by 0.7% in March. This compares with a 0.6% fall in February, which was revised slightly lower. The latest reading was also stronger than expected, with economists having predicted a 0.1% dip for the month.
Statisticians noted that March’s increase was particularly driven by a spike in demand for fuel. Sales volumes for fuel jumped by 6.1% for the month, the highest level since April 2021. They indicated that this was especially linked to a short period, of less than a week, of particularly elevated sales as unfolding geopolitical events in the Middle East caused a significant rise in prices at the pump.
Fuel prices surge
The value of sales, the amount of money spent, for fuel was up 11.6% amid the jump in petrol and diesel prices. Recent data from the RAC shows that petrol prices have risen by 18.5% to 157.34 pence per litre, as recorded on Wednesday. Meanwhile, diesel is up 33.4% to an average of 189.88 pence per litre.
Quarterly performance
The ONS said overall retail sales volumes are up 1.6% for the first three months of 2026, as the industry was also supported by positive growth in January. ONS senior statistician Hannah Finselbach said: “Retail sales rose in the three months to March, with commercial art galleries doing well earlier in the quarter and sales in beauty products stores rising as retailers reported launching new collections. Motor fuel sales were up on the quarter, with retailers commenting that many motorists had been filling up their tanks in March following the start of conflict in the Middle East.”
