More than £500 million of the total is VAT
The direct cost of the war in the Persian Gulf to drivers has now exceeded £3 billion, the RAC Foundation estimates.
By taking average daily fuel consumption figures from 2025, and comparing the prices drivers have been paying at the pumps since 28 February when the conflict began with fuel prices before the first bombs were dropped on Iran, the Foundation calculates an extra £3.03 billion has now been shelled out on the forecourts in ‘war premiums’.
Of the £3.03 billion, £505 million is VAT, some of which is likely to be reclaimed by VAT-registered businesses.
Steve Gooding, director of the RAC Foundation, said:
“The impact of war in the Persian Gulf continues to hit drivers on a daily basis. We have now surpassed £3 billion of ‘war premiums’ being paid at the pumps since the conflict began nearly three months ago. Inevitably that total will rise even if oil and pump prices drop back.
“The confirmation by the chancellor of a continued freeze in the rate of fuel duty after September, when it was due to start rising again, is welcome but the financial pressures for those – including millions of businesses – reliant on fossil fuels to run their vehicles goes on.”
ENDS
Contacts:
Philip Gomm – Head of External Communications – RAC Foundation
[email protected] | 07711 776448
Notes to editors:
The RAC Foundation is a transport policy and research organisation which explores the economic, mobility, safety and environmental issues relating to roads and their users.
It is a registered charity. Charity number: 1002705.
The Foundation publishes independent and authoritative research with which it promotes informed debate and advocates policy in the interest of the responsible motorist. For more information visit www.racfoundation.org