Petrol drivers hit with £123 charges in June

Petrol drivers are facing £123 charges on average in June if they complete an average amount of miles in an average petrol car.

Drivers are by now painfully aware of the soaring cost of petrol and diesel, with the war in the Middle East having seen petrol prices shoot up. In January, the Express reported that petrol was 134.97p per litre and diesel was 142.96p. As of Friday, May 29, petrol is currently 159.48p per litre and diesel is 184.31p, which means increases of 55p and 38p respectively since the start of 2026.

According to motoring and insurance website Nimblefins, the average fuel economy of UK petrol cars is 36mpg, which means that, based on the new price per litre for petrol today, May 1, it now costs a massive 20p per mile to fuel the average petrol car.

The average driver completes 7,400 miles per year, according to Britannia Car Leasing. Divided evenly across the year, this means 616 miles per month, which at 20p per mile would set a driver back £123.

Motoring research charity the RAC Foundation estimated that rises in pump prices since the conflict in the Middle East began on February 28 have led to motorists paying an additional half a billion pounds for petrol and £1.5billion for diesel.

The analysis also shows the additional VAT received by the Treasury because fuel is more expensive exceeds £336 million.

The figures are based on average daily pump price rises and last year’s fuel consumption rate.

VAT on road fuel is charged at 20% on top of the combined price of the product and fuel duty, with the latter standing at nearly 53p per litre.

Steve Gooding, director of the RAC Foundation, said: “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.

“As ministers themselves have warned, the economic effects of the conflict could last for months even after it has ended.

“The owners of diesel vehicles have borne the largest brunt of the pump price hikes, many of whom will be commercial users with little choice but to pass on their costs to their customers.

“Whether we are drivers or not, we all end up feeling the pinch from sky-high forecourt fuel prices.”

Following the recent spike in prices, the government has now confirmed that it will extend the temporary fuel duty cut of 5p one more time. Due to end in September, the cut took 5p per litre off the price of fuel at the pumps.

Following cost of living pressure from drivers, Chancellor Rachel Reeves confirmed that the cut will be extended again, until the end of 2026.