Around 10% of forecourts in the UK are charging £2 a litre for fuel, with 236 locations selling diesel at over £2 and 633 pricing it at 199.9p, according to analysis by the Petrol Prices website. Average diesel prices have reached 193.85p a litre, while petrol prices are at 171.27p. This marks a significant increase from pre-conflict prices of 142.38p for diesel and 132.83p for petrol.
The cost of filling a 55-litre tank is now £94 for petrol and £107 for diesel, compared to £73 and £78 before the conflict began. The rise in fuel prices is attributed to the ongoing war in Iran, which has affected global oil supplies and contributed to rising inflation in the UK, which increased from 2.9% to 3.1%.
The Labour Party is facing pressure to reconsider a planned Fuel Duty hike set for January 1 and March 1, which would increase costs by 3p and 2p per litre, respectively. This hike is expected to generate additional revenue for the Treasury amid rising household energy bills.
Experts note that higher diesel prices impact the haulage sector, leading to increased costs for goods in stores. One haulage firm reported a £1 million weekly increase in fuel costs since the onset of the Iran war, contributing to an additional £7.5 billion in expenses for drivers.
The Treasury has benefited from a £1.3 billion VAT increase due to higher fuel prices. The RAC has called for tax relief in the upcoming Budget, urging the government to consider options such as abandoning the Fuel Duty hike or reducing VAT on fuel. A Treasury spokesman stated that tax decisions are typically announced during fiscal events rather than through commentary on speculation.