Fuel prices: where we are now

March 16, 2026

UK fuel prices are climbing sharply again as geopolitical tensions in the Middle East push oil markets higher – and diesel drivers are feeling the biggest impact.

Since late February, diesel prices have risen by around 18p per litre, reaching roughly 160ppl, while petrol has increased by about 7–8ppl to around 141ppl on average across the UK. That adds roughly £10 to the cost of filling a typical 55-litre diesel car, according to RAC Fuel Watch data.

The spike follows volatility in global oil markets after conflict involving Iran disrupted supply routes around the Strait of Hormuz – a key shipping channel for global oil. Analysts say every $10 increase in crude oil prices typically adds around 7p per litre at the pump, meaning sustained oil prices near $90–$100 per barrel could push UK petrol prices towards 150ppl and diesel closer to 170–180ppl.

Diesel is rising faster partly because the UK imports a large share of its supply, leaving it more exposed to international market movements.

The Competition and Markets Authority (CMA) has already warned fuel retailers it will closely monitor pricing behaviour as costs rise. Meanwhile, ministers are under pressure to reconsider a planned fuel duty increase scheduled to begin in September 2026.

For fleets, the financial impact can escalate quickly. Even small pump price increases can add hundreds of thousands of pounds to annual operating costs across large vehicle operations.

That volatility raises an important question for fleet strategy. According to the latest Fleet Power Index from 360 Media Group, 13% of SMEs say they are not currently considering adding electric vehicles to their fleet. If fuel prices continue to rise, however, that position may start to shift.

It is a theme explored in this week’s Fleet1000 interview with Leonie Channell, who argues that fuel shocks are increasingly becoming a catalyst for electrification as organisations reassess the long-term economics of running petrol and diesel vehicles.