Fuel Prices Are Still Rising — And Starmer’s Plan Is Still Missing
Prices are surging, costs are spreading through the economy — and all ministers are offering is “we’re monitoring it”
Fuel prices are moving fast — and the numbers are getting worse.
When I wrote on Sunday, I estimated that rising pump prices were handing the Treasury about £36 million more in VAT every week. Just a few days later, that figure is already closer to £43 million a week.
Petrol has jumped from 132.83p on 28 February to 153.68p a litre. Diesel has surged from 142.38p to 184.20p. That is a rise of 20.85p for petrol and 41.82p for diesel in just over a month.
This is moving quickly — and it is already starting to spread beyond the forecourt.
⛽ Prices Are Still Rising
This is no longer a minor increase that drivers can absorb. It is a sharp and sustained squeeze on households, commuters and businesses.
Diesel is doing much of the damage. And when diesel rises like this, it does not stay contained. It feeds directly into deliveries, logistics and the cost of moving goods across the country.
There is no clear sign yet that the pressure has peaked. If anything, the risk is that it spreads further through the economy before it eases.
🎤 On Wednesday, Starmer Offered Review — Not Relief
At his press conference on Wednesday, Keir Starmer confirmed the fuel-duty cut will remain until September, while emphasising that the government is monitoring the situation.
Prices are rising now. Costs are rising now. And the inflation data has not even caught up yet. What motorists are being offered is uncertainty. What businesses are being offered is a delay. And what families are being offered is the hope that things improve.
When people want action, the government is offering a review.
📉 This Is Starting To Look Like A Wider Economic Problem
The February inflation figures are already out of date. They were collected before the Iran conflict began on 28 February, when fuel was still dragging inflation down.
The next figures will show something very different. Petrol and diesel are now likely to push inflation back up again.
Once that happens, this stops being just a fuel story. Higher fuel costs feed into transport, deliveries and wider business prices. If that pressure holds, it begins to show up across the economy.
And if it lasts long enough, it hits the public finances too. Higher inflation increases the cost of servicing government debt. At the same time, benefits are uprated using the September inflation figure, meaning sustained price rises now can translate directly into higher welfare spending next year.
Fuel does not just hit the pump. It works its way through everything.
🚗 Drivers Are Being Squeezed From More Than One Direction
This is not just about the cost of filling up anymore. From this month, the standard annual rate of Vehicle Excise Duty rises to £200, with more vehicles — including electric cars — being drawn into the tax net.
So drivers are being hit twice. Higher costs when they use their car, and higher costs simply for owning one.
🛣️ You Already Pay Per Mile
There is also a bigger point here. Motorists are often warned about pay-per-mile charges. But for petrol and diesel drivers, that system already exists.
Every time you fill up, you pay fuel duty. The more you drive, the more fuel you use, and the more tax you pay. The model has not changed. The state is not moving away from taxing movement. It is looking for the next version of it.
🌄 Many Motorists Have No Real Choice
For many people, driving is not optional. It is essential.
That is especially true in rural areas, where public transport is limited or non-existent. For millions, the car is the only way to get to work, run a business, or manage daily life.
That is what makes this so politically important. The easiest people to tax are the ones who cannot opt out.
🌍 Other Governments Are At Least Trying To Cushion The Blow
Across Europe and beyond, governments are stepping in.
Fuel taxes are being cut. Temporary subsidies are being introduced. Key sectors are being supported. In some cases, direct action is being taken to limit price volatility.
The approach is simple: when prices surge, governments act. Britain’s response looks very different. Ministers are monitoring the situation, while the cost to drivers keeps rising.
Conclusion
What began as a pump-price story is now something much bigger. It is an inflation story. A business-cost story. And increasingly, a public-finance story too.
For millions of people, there is no alternative to driving. They still have to get to work, move goods and keep daily life going.
Higher fuel prices do not just hit drivers. They ripple through the economy, push up inflation, and — if they persist — increase the cost of benefits and borrowing as well.
There are no official shortages today. But if this continues, the risk is no longer just higher prices. It is a wider disruption. Drivers are paying more. Businesses are paying more. Families are paying more.
And Britain still has no real plan.
✍️ Jamie Jenkins
Stats Jamie | Stats, Facts & Opinions
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