UK motorists pay £7.5bn extra at pumps
A study showed higher crude-linked prices since Feb 28 have pushed petrol and diesel to four-year highs and added about £1.3bn in VAT receipts.
Mateo Fernandez ·
UK motorists paid an extra £7.5 billion for petrol and diesel since Feb 28, lifting pump prices to a four-year high and generating about £1.3 billion in VAT for the Treasury.
£1.3 billion VAT boost
Data showed the additional cost reflects higher wholesale fuel prices since late February, as petrol and diesel moved back toward levels last seen four years ago. The tally also raised VAT receipts by roughly £1.3 billion, the study said.
Higher pump prices squeeze household budgets and raise costs for firms that use fuel intensively. Economists say such moves typically subtract from disposable income and can temper consumer spending in the near term, with implications for retail sales and transport-dependent sectors.
Markets will monitor crude oil supply and demand indicators through Oct. 1, 2026, for signs that wholesale energy prices — and therefore UK pump prices — may ease. If oil stabilises by that date, pump prices could retreat; if supply risks persist past Oct. 1, prices are likely to remain elevated and continue to support VAT receipts.