The real impact of soaring fuel prices, and what you can do about it

Prices at the pumps are soaring once again, with petrol rising 31% and diesel 41% since late February this year.

This is having a big impact on many UK motorists. The average petrol car costs £22 more to fill up since February, and the average diesel car £30 more. With the war in Iran showing no signs of ending, it’s unlikely prices will fall anytime soon.

We reveal the true impact of rising fuel prices no matter what car you drive, as well as our top tips on how to reduce your fuel costs.

Petrol and diesel prices over time

Data from the RAC Foundation shows the impact on fuel prices of the conflict in Iran, which started in late February. Diesel was initially impacted far more than petrol, with prices then slowly dropping over the summer and the gap between petrol and diesel narrowing.

However, with expectations that the war will now continue until at least November, prices for both have risen sharply once again.

High global demand from the haulage and shipping industries, combined with limited supplies, means diesel prices are particularly volatile and currently sit at their highest levels since 2022. Reports that US President Donald Trump is considering ending all exports of diesel from the USA could make things even worse.

EV owners largely unaffected

For electric car owners, prices have been much more stable.

EV charger finder service Zapmap tracks the price of charging a car at all types of chargers and with a range of tariffs. Zapmap's data shows that the greatest percentage cost increases are with off-peak home charging and slow public chargers, although they have increased by only 0.9p and 3p per kWh over the last 12 months, respectively.

The average price of rapid charging actually fell recently. This can be attributed to MFG, one of the largest EV charger operators, introducing a 25% discount on charging (from 79p per kWh to 59p per kWh) on 1 July. The promotion ends on 30 September, so average rapid charging prices are likely to return to their previous levels.

Tesla is also gradually making more of its Supercharger network of public chargers available to non-Tesla drivers. As these chargers are often much cheaper than public chargers, they bring the average cost of charging down for high-speed chargers.

Should you buy an electric car? Discover the questions to ask yourself before making the switch

The true impact on running costs

This chart shows the average monthly running cost of all cars that we’ve lab tested, based on driving 5,561 miles per year (the average annual mileage reported by owners in our latest car survey) and using end-of-month fuel cost data from RAC Fuel Watch. We’ve excluded plug-in hybrids as their running costs depend heavily on how often the battery is charged and used.

The average annual running cost for petrol, diesel and hybrid cars we’ve tested has varied a lot since February. And while diesel cars are typically more efficient than petrol, meaning they're often cheaper to run despite diesel prices being higher, the chart shows this isn't always the case.

Hybrid cars are less affected by rising fuel costs thanks to their batteries, which make them more efficient. Meanwhile, electricity costs have been fairly consistent because of only limited changes to the government’s Energy Price Guarantee (EPG). The EPG will rise on 1 October, but by less than 1%.

While the average figures in the chart give a good overview of how running costs have changed, the impact on you depends on your driving habits (such as how far and how efficiently you drive). The car you drive also has a significant impact on your running costs, with our lab tests showing that efficiency varies greatly across different fuel types.

It’s also worth noting that the government announced a cut of VAT for domestic electricity supplies in July, which starts on 1 October and runs until March 2027. This cut (from 5% to 0%) will make it slightly cheaper for people who charge at home.

Inefficient cars worst hit

The KGM Rexton is one of the most expensive cars to run that we’ve tested, and this large luxury diesel SUV, first launched in 2018, sits at the top of the KGM range.

The chart below shows how the average monthly cost for the Rexton has varied since February this year.

Assuming 463 miles per month (the average mileage reported by all car owners in our last car survey), the Rexton's current monthly refuelling cost is just over £140 – up £40 since February.

EV charging costs depend on where you charge

The Mercedes-Benz CLA 250+ Electric is one of the most efficient cars we’ve tested. With it also being an electric car, the monthly charging costs are potentially very low.

As electricity prices are relatively stable compared to petrol and diesel, the monthly cost of charging largely depends on where you charge.

Home charging on an off-peak EV tariff is by far the cheapest, but the cost quickly rises if you start using public chargers, particularly rapid chargers.

Save big by shopping around

Before you fill up, it’s worth comparing prices with tools such as PetrolPrices.com, as shopping around can make a big difference to fuel costs in the long run. We’ve spotted some areas of the UK where there are huge price differences, even with stations just a few miles apart. 

As shown in the screenshot of petrol prices in Watford (taken from PetrolPrices.com on 24 September 2026), the cheapest petrol is from Costco at 161.9p, but you have to be a Costco member to use it. However, this appears to have caused nearby stations to reduce their prices, with Asda being the lowest at 164.7p (around 10p lower than the national average).

Meanwhile, just down the road, the Welcome Break service station on the M1 is charging 196.9p per litre of petrol.

All three stations are within a 3.5-mile radius, and by going to the Asda instead of Welcome Break you'd save a whopping £17.72 on 55 litres of petrol (or around £6 compared to the nearby BP station at 175.9p per litre).

Other ways to save

Checking tyre pressure, driving smoothly and removing unnecessary heavy items from the boot can all help. For more tips, see our guide on money-saving driving tips.

If you have an electric car and regularly use public rapid chargers, consider getting a subscription. You’ll only get the discount at charge points from that brand, but discounts can be as much as 40% for around £10 a month. You can see how this reduced our running costs when taking an EV into Europe.

And if you’re in the market for a new or used car, be sure to read our new-and-used car reviews (particularly the efficiency figures) first. Our lab-tested efficiency figures are more realistic and often lower than official figures quoted by manufacturers.

Should you switch to an EV?

There’s no doubt that an EV provides the biggest potential for running cost savings. Compared to full hybrids (the second-cheapest fuel type of car to fuel, according to our data), you could save around £31 a month if you drive an EV. This difference increases to around £56 if you have an electricity tariff that gives you discounted overnight charging.

But if you can’t charge at home, you’re unlikely to save money, as public charging is expensive and running an EV this way could end up costing more than it would to run a hybrid car. For more on this, read our guide on EV charging costs.

The UK’s used EV market is growing as more new EVs are registered, making it a good way to save money when buying. At the time of writing, we spotted plenty of used BMW i3 electric cars for sale for under £6,000, while used Vauxhall Corsa Electric cars can be picked up for around £9,000.

You also needn’t be too concerned about battery degradation on used EVs. Our data shows that EVs first registered in 2018 and 2019 still have 94% of their available range left compared to when they were first bought. Plus, nearly all EV batteries are covered by eight-year manufacturer warranties. Find out more about our research on battery degradation.

It’s not all good news for electric car owners, though. From April 2028, EVs and PHEVs will be subject to a pay-per-mile tax of 3p and 1.5p per mile, respectively. However, with fuel duty for petrol and diesel having already risen (and likely to continue to rise in future years), EVs are still going to be cheaper to run if you can charge at home.

For more on what to think about before going electric, read our guide on the pros and cons of buying an EV.