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UK petrol and diesel prices are rising fast in March 2026 as oil surges past $100 a barrel. Find out why fuel costs are going up, how it affects car insurance, repairs and everyday shopping, and what you can do to save money.
UK fuel prices have hit their highest levels in more than two years. Petrol is averaging 152p per litre and diesel has surged past 181p - driven by the conflict in the Middle East disrupting global oil and gas supply. And the impact is not just at the pumps. Energy bills and EV charging costs are also in the firing line. Here is what is happening and what UK drivers can do about it.
Fuel prices in the UK have risen sharply since late February 2026, and they are at their highest point in over two years. The conflict in the Middle East has disrupted the flow of oil and liquefied natural gas (LNG) through the Strait of Hormuz - a narrow waterway that carries roughly 20% of the world's energy supply. When that route is disrupted, global wholesale prices spike fast, and UK drivers feel it at the pumps within days.
According to RAC Fuel Watch, the average UK petrol price stood at 152p per litre on 31 March 2026, with diesel at 181.2p - increases of around 12p and 25p per litre respectively since the conflict began. The House of Commons Library noted that diesel saw some of the sharpest weekly rises on record in March 2026 alone.
For drivers who prefer to think in gallons, that puts UK petrol prices at roughly £6.92 per gallon and diesel at around £8.23 per gallon - levels not seen since the summer of 2022.
The full impact of the oil price spike is already showing up at UK forecourts. Here is what a typical 55 litre fill-up costs compared to before the conflict began - and prices may still have further to go depending on how the situation develops.
| Fuel type | Cost per tank (Feb 2026) | Cost per tank (31 Mar 2026) | Difference |
|---|---|---|---|
| Petrol (55 litres) | £73.04 | £83.60 | +£10.56 |
| Diesel (55 litres) | £78.32 | £99.66 | +£21.34 |
Diesel drivers are feeling the squeeze hardest. A full tank now costs almost £100 on average - up more than £21 compared to just six weeks ago. Analysts have warned prices could rise further if the disruption to shipping routes continues through the summer.
Regional variation means some UK drivers are paying even more. Early April 2026 data showed certain London forecourts charging north of 200p per litre for petrol. Using the government's Fuel Finder tool or apps like PetrolPrices and RAC Fuel Watch before filling up can make a meaningful difference - prices at nearby stations can vary by 20p or more per litre.
A full petrol shortage in the UK is unlikely in the short term. The UK sources crude oil from a range of suppliers and holds strategic reserves. However, the disruption is still significant - higher wholesale prices mean UK fuel prices are rising fast even without supply running dry.
The bigger risk is a prolonged price increase rather than forecourts running empty. The Strait of Hormuz disruption is pushing up costs across the global supply chain, and that pressure feeds through to UK pump prices whether or not physical supply is directly affected.
The government's 5p per litre fuel duty cut stays in place until the end of August 2026. After that, duty will gradually rise back to pre-2022 levels by March 2027 - meaning fuel prices face further upward pressure later in the year, on top of any ongoing market volatility.
It is not just petrol and diesel prices that are affected. The UK relies on liquefied natural gas (LNG) for around a third of its energy supply, and LNG is imported - much of it through or around the affected region. When LNG supply tightens, wholesale gas prices rise, and because gas-fired power stations still set the price of electricity in the UK most of the time, electricity costs go up too.
The good news is that the Ofgem energy price cap fell by 7% on 1 April 2026, reducing the average annual dual-fuel bill to £1,641 for a typical household. However, the cap is set in advance using a three-month average of wholesale prices - so it does not yet reflect the spike caused by the conflict. Forecasters at EDF Energy expect the July 2026 cap to rise by around £217, pushing annual bills back up towards £1,858. Some analysts at Oxford Economics have forecast an increase of up to 19%.
Energy consultancy Cornwall Insight has warned that UK households remain heavily exposed to international market movements, and that what happens in wholesale energy markets over the next three months will be the key factor in setting the July cap.
Yes - though EV drivers are still in a significantly better position than petrol or diesel drivers, even with energy prices rising.
From 1 April 2026, the standard variable electricity rate under the Ofgem price cap is 24.67p per kWh. If the July cap rises as forecast, that rate could climb again. For an EV with a 60 kWh battery, a full home charge at the April rate costs roughly £12.34 - enough for 200 to 250 miles of real-world range. If the July cap rises by the predicted 15%, that same charge would cost around £14.20.
| Charging method | Approx. cost per kWh | Cost per mile (typical EV) |
|---|---|---|
| Home - standard rate (Apr 2026 cap) | 24.67p | ~7p |
| Home - off-peak EV tariff (overnight) | 7-8p | ~2-3p |
| Public AC charger (standard) | ~54p | ~16p |
| Public rapid charger | ~76p | ~22p |
| Petrol car (152p/litre, 45mpg) | - | ~15p |
Even at the standard April 2026 rate, home charging an EV costs around half as much per mile as filling up with petrol. Drivers on dedicated off-peak EV tariffs - available from suppliers including Octopus Energy - can charge overnight for as little as 7-8p per kWh, cutting costs further still.
Public rapid charging is the exception. At around 76p per kWh, it already costs more per mile than a petrol car - and if wholesale electricity prices rise in July, that gap could widen. EV drivers who rely heavily on rapid chargers rather than home charging will feel the LNG price squeeze more acutely.
Fuel and energy are the most obvious costs, but the wider impact on motoring is broader. Here is a quick look at what else is affected.
Higher fuel and material costs push up the price of repairs and replacement parts. That feeds into what insurers pay out on claims, which can lead to higher premiums. EY forecasts insurers will pay out £1.11 for every £1 earned in 2026.
Oil-based products like engine oil, lubricants and tyres all cost more when crude prices rise. Garage bills can creep up as a result, affecting both petrol and diesel drivers.
Almost everything in the shops arrives by road. When haulage diesel costs more, delivery charges go up - and those costs are often passed on at the checkout.
For a full breakdown of what is driving insurance costs right now, read our guide on how much car insurance costs in 2026.
Shop around for fuel. Since February 2026, all UK fuel retailers must report their prices within 30 minutes under the Fuel Finder scheme. Prices can vary by 20p or more per litre between nearby stations, so checking before you fill up can add up to real savings over a year.
Drive fewer miles where you can. Lower mileage means less fuel spend and could mean a lower insurance quote too. Our guide on average UK mileage explains how annual mileage affects your costs.
If you drive an EV, switch to a dedicated off-peak tariff. Charging overnight at 7-8p per kWh rather than the standard 24.67p rate can reduce your annual home charging costs by several hundred pounds - the savings are particularly significant if you cover high mileage.
Compare your car insurance. Even when costs are rising across the board, different insurers price the same driver very differently. A few minutes comparing quotes could save you hundreds of pounds a year - and it is one of the easiest actions you can take to cut your overall motoring bill.
See how much you could potentially save on your car insurance.
Compare Car Insurance via BrumbleRising fuel prices in the UK are hard for any household to absorb. But knowing where the extra costs show up - at the pumps, on your energy bill, or on your charging costs - puts you in a stronger position to act. Small steps can add up to real savings over the year.
Sources
RAC Fuel Watch - Latest UK petrol and diesel prices, March/April 2026
House of Commons Library - Petrol and diesel prices briefing, March 2026
Ofgem - Energy price cap changes, April to June 2026
GOV.UK - Fuel duty rates 2026 to 2027
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