Fuel prices across the UK have surged dramatically in recent weeks, pushing costs toward record highs. Diesel now stands at 175.73 pence per litre, a sharp rise of 33 pence or 23.4% since February 28. Petrol reaches 149.44 pence per litre, up 16.6 pence or 12.5% in under a month.
Imminent £100 Tank Milestone
Diesel prices approach the 180 pence per litre mark in the coming days. At 182 pence, an average family car’s tank would exceed £100 to fill. Petrol, heading toward 150 pence, would cost £82.50 for a full tank. These levels loom as early as April 1.
Global Disruptions and Price Controls Abroad
A blockade in the Strait of Hormuz disrupts oil supplies, intensifying the crisis four weeks after heightened regional tensions. Many nations have enacted protections: China, Croatia, Greece, Hungary, Japan, Mexico, South Korea, and Thailand impose retail fuel price caps. Taiwan absorbs 60% of hikes through government mechanisms. Germany and Austria limit station price adjustments, while France sets ceilings and boosts anti-gouging inspections. Spain, Portugal, and Sweden cut VAT or excise taxes to ease burdens.
UK Fuel Taxation Structure
The UK applies fuel duty at a fixed 52.95 pence per litre for petrol and diesel, frozen since 2011-12. A 20% VAT rate then applies to both the fuel price and duty. This yields an additional £91 million monthly in VAT revenue for the Treasury, totaling over £1 billion annually.
Government Monitoring and Economic Strain
Chancellor Rachel Reeves and Energy Secretary Ed Miliband state they closely watch pump prices amid the crisis. They have warned fuel industry operators that profiteering will not be tolerated.
These developments coincide with rising household bills for millions, worsening cost-of-living pressures. Inflation, at 3%, faces potential increases of 0.3 percentage points, impacting families and businesses further.
