Key facts
- UK van drivers will collectively spend an estimated £2.5bn more on diesel this year.
- Total projected diesel spending for UK van and pickup owners is nearly £8.5bn.
- The average van driver's annual fuel bill is forecast to reach £1,965.
- Diesel prices have risen over 40% since late February, exceeding £2 a liter.
- Approximately 95% of light commercial vehicles in the UK run on diesel.
- The RHA is urging the government to abandon planned fuel duty increases and offer a 15p/liter rebate.
Millions of van drivers in the UK are facing a significant increase in diesel costs this year, with projections indicating an additional £2.5 billion expenditure due to record-high prices. This surge is attributed to global fuel shortages stemming from disruptions to refineries in the Middle East and Russia.
Analysis by Moneysupermarket suggests that owners of diesel vans and pickups will collectively spend nearly £8.5 billion at the pump this year, a substantial rise from the £5.95 billion spent last year. This increase is causing concern that the costs of transporting food and goods by road could escalate, leading to higher prices for consumers as retailers pass on logistics expenses.
The average fuel bill for a van driver is now estimated to reach £1,965 this year, a notable jump from £1,294 in 2025, based on typical mileage and fuel consumption. The number of vans on UK roads has grown considerably in recent years, driven by the expansion of online shopping and home deliveries. Despite a growing adoption of electric vans, diesel still powers approximately 95% of light commercial vehicles.
Diesel prices surpassed £2 a liter for the first time this month, marking a more than 40% increase since late February, coinciding with the US-Israel conflict's impact on oil supplies from the Gulf. This has contributed to broader economic cost increases.
In response to the rising costs, industry groups are urging the government to provide support in the upcoming budget. Key demands include abandoning planned fuel duty increases, which are set to add 3p per liter from January 1 and another 2p from March 1. The Road Haulage Association (RHA) described these hikes as a "hammer blow" for businesses and consumers.
Richard Smith, managing director of the RHA, highlighted that many members operate on thin margins of around 2%, and surging fuel prices are already costing some firms thousands extra weekly. He emphasized that a fuel duty hike would directly translate to higher food prices.
The motoring group RAC reported that, despite a recent dip, diesel prices remain about 57p a liter higher than before the US-Iran conflict, with petrol prices also elevated. This translates to households paying significantly more per fill-up for cars. Simon Williams, head of policy at the RAC, stated that the government could mitigate these costs by extending fuel duty cuts or reducing VAT on fuel.
Smith also mentioned that the RHA is advocating for a 15p a liter rebate for UK van, coach, and haulage operators, similar to measures taken by Spain, France, and Italy. Meanwhile, on Friday, US President Donald Trump announced a deal related to Russian oil to ease pump prices for American drivers, a move that reportedly angered Ukrainian President Volodymyr Zelenskyy.