Petrol drivers in the UK are set to pay an average of £123 in June, following the latest surge in fuel prices. The increase, driven by ongoing conflict in the Middle East, has pushed petrol to 159.48p per litre as of late May, up from 134.97p in January. Diesel has also risen sharply, from 142.96p to 184.31p per litre.
How the Costs Add Up
According to motoring website Nimblefins, the average petrol car achieves 36 miles per gallon. At current prices, this equates to 20p per mile. With the average driver covering 7,400 miles annually, or 616 miles per month, the monthly fuel bill reaches £123.
The RAC Foundation estimates that since the Middle East conflict began in late February, motorists have paid an additional £500 million for petrol and £1.5 billion for diesel. The Treasury has also benefited from higher VAT receipts, collecting over £336 million extra due to the price hikes.
Fuel Duty and VAT
VAT on road fuel is charged at 20% on top of the combined product price and fuel duty, which stands at nearly 53p per litre. The government recently extended the temporary 5p fuel duty cut until the end of 2026, providing some relief to drivers.
Steve Gooding, director of the RAC Foundation, commented: "This is another unwelcome milestone for millions of motorists as the financial pain caused by the war in the Persian Gulf continues to mount up. The owners of diesel vehicles have borne the largest brunt, many of whom are commercial users with little choice but to pass on costs to customers."
Gooding added: "Whether we are drivers or not, we all end up feeling the pinch from sky-high forecourt fuel prices."
The government has confirmed that the fuel duty cut, originally due to end in September, will be extended for another year to help ease cost of living pressures.
