Vehicle Energy Cost Calculator: Transport Energy Analysis

UK pump prices are at their highest level in more than two years. As of mid-May 2026, petrol is averaging around 157–158p per litre and diesel around 188p — increases of roughly 25p and 50p per litre respectively since Middle East wholesale disruption affecting global oil markets in early 2026.

Roughly half of what you pay at the pump goes to the Treasury. On a 157p litre, around 53p is fuel duty — a flat tax set per litre regardless of the oil price — and another 26p or so is VAT, charged at 20% on top of duty and product cost. The rest covers the wholesale fuel itself, biofuel content, transport and the retailer's margin.

The duty rate has been held at 52.95p since March 2022, when the previous government cut it by 5p as part of a cost-of-living package. The scheduled unwinding from September 2026 below reflects current legislation but may be subject to change — the 5p cut has been extended multiple times since 2022. Check HMRC rates guidance for latest updates.

Each duty rise also pulls VAT up with it (20% applied on top), so a 1p duty rise translates to a ~1.2p pump price rise. By March 2027, a litre of fuel at otherwise unchanged wholesale costs will be 6p more expensive than today.