Impact of oil price shock on UK driving costs

Disruption to global oil supply routes, particularly through the Strait of Hormuz, has driven a sharp increase in fuel prices, with petrol rising by 27 pence per litre and diesel by 43 pence per litre compared to pre-conflict levels.

These price increases have translated into significant additional costs for UK drivers. The analysis estimates that petrol and diesel vehicles have collectively incurred approximately £1.7 billion in extra running costs over the 100-day period. On an individual level, diesel drivers paid around £255 more than they would have if driving an equivalent electric vehicle (EV), while petrol drivers paid approximately £175 more. This reflects the relative insulation of EV users from fluctuations in global oil markets.

Across the UK car fleet, the cumulative financial impact is more substantial. The ECIU estimates that petrol and diesel cars have cost over £6.3 billion more to operate during this period than if the same journeys had been undertaken using EVs. The analysis highlights how exposure to fossil fuel price volatility can drive up household transport costs, particularly during periods of geopolitical instability. 

Market trends suggest that these cost dynamics may be influencing consumer behaviour. Industry data referenced in the release indicates that electric vehicles accounted for 27% of new car sales in May 2026, reflecting a broader increase in EV uptake across the UK and internationally. Supporting sources cited in the release, including data from the Society of Motor Manufacturers and Traders (SMMT) and Auto Trader, indicate that both new and second-hand EVs are increasingly price-competitive with petrol vehicles, partly due to manufacturer discounting and policy-driven market expansion.