Drivers in the UK have paid an extra £7.5 billion at the pumps since the conflict involving Iran erupted, according to a study by the RAC Foundation, intensifying pressure on the Labour government to abandon its planned Fuel Duty increase. The figure covers the period since 28 February, when prices surged after the US bombed Iran and Tehran blockaded the Strait of Hormuz, with global oil prices pushing back above $100 a barrel. The Treasury has also benefited, collecting an extra £1.3 billion in VAT because the 20 per cent levy generates more revenue when pump prices rise, prompting Conservative and Reform UK figures to accuse the government of profiting from motorists' pain.

Average petrol prices reached a post-war record of 170.54p a litre and diesel hit 192.86p, the highest levels since summer 2022, compared with 132.83p and 142.38p respectively before the conflict began. Filling a 55-litre family car now costs around £93 for petrol or £106 for diesel, up from roughly £73 and £78 previously. Diesel drivers, including hauliers, have been hit hardest, accounting for £5.4 billion of the extra spending and £894 million of the VAT windfall, with critics warning that rising haulage costs risk pushing up shop prices. Fuel Duty is currently due to rise by 3p a litre from 1 January and a further 2p in March, and campaigners are urging Chancellor John Healey to scrap the hike in next month's Budget.