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UK fuel prices reach four-year highs as duty hikes and oil supply issues hit pumps

A conceptual illustration of a rising price graph over a shipping lane and a fuel nozzle representing global oil pressures.

A combination of domestic tax changes and global supply disruptions has pushed UK fuel prices to their highest levels in four years.

UK petrol and diesel prices have climbed to their highest levels since 2022 following a combination of global oil supply disruptions and the first phase of a domestic fuel duty reversal. As of September 10, 2026, the average price of unleaded petrol reached 167.81p per litre.

Diesel prices have also seen a significant uptick, reaching 189.31p per litre. This remains approximately 2p below the record peak of 191.31p set in April 2026 during the height of regional conflict, but it represents a return to price levels not seen for nearly four years prior to that volatility. For a motorist with a standard 55-litre family car, the cost of a full tank now stands at approximately £92.18 for petrol and £104.01 for diesel.

The average price of unleaded petrol reached 167.81p per litre by mid-September 2026.

Tax Reversals and Global Supply Pressures

The current price surge is driven by a two-pronged pressure on the UK fuel market. Domestically, the government began reversing the 5p fuel duty relief originally introduced in 2022. The first stage of this policy was implemented on September 1, 2026, with a 1p per litre increase in duty. According to fuel duty rates scheduled for the remainder of the fiscal year, further increases of 2p per litre are expected in December 2026 and March 2027.

Simultaneously, global Brent crude oil prices have exceeded $100 per barrel. This elevation is largely attributed to the ongoing closure of the Strait of Hormuz, a critical maritime corridor for global oil shipments. The blockage has restricted supply from major producers, forcing wholesale costs higher across international markets.

Rod Dennis, a senior policy officer at the RAC, stated that pump prices are climbing primarily because the cost of oil has remained “consistently elevated.” Analysis of the market suggests that as long as the Strait remains closed and the planned tax hikes proceed, retailers are likely to continue passing these increased costs onto consumers.

Comparison to Recent Peaks

While the September 2026 figures mark a multi-year high for petrol, diesel remains slightly below the absolute peak recorded on April 15, 2026. During that period, diesel prices hit record highs before stabilizing over the summer. However, the current trajectory suggests that the price gap is closing quickly as the market absorbs both the September duty hike and the sustained $100-plus barrel price for crude oil.

The impact of the fuel duty reversal is expected to be cumulative. By the time the final 2p increase is applied in March 2027, the total tax burden on fuel will have returned to pre-2022 levels, potentially adding further upward pressure to pump prices regardless of fluctuations in the global oil market.

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