Your support helps us to tell the story Read more Support Now From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging. At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story. The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it. Your support makes all the difference. Read more
The cost of the Iran oil crisis on UK drivers has reached an “unwelcome milestone” in just over a month, according to new analysis.
Analysis by the RAC Foundation estimated that rises in fuel 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 £1.5 billion for diesel.
The analysis also shows that 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 per cent 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.”
Oil prices – which have a significant effect on the cost of wholesale fuel – soared in response to Iran’s stranglehold on tankers passing through the Strait of Hormuz.
The average price of a litre of petrol and diesel at UK forecourts remains 24p and 47p respectively higher than before the war began, despite a slight drop in recent days.