You’ve Got to Be Joking: Labour Government silent as Fuel Costs Surge Toward £2 a Litre

UK Fuel is among the most expensive in the world.

When you read this article, you will be shocked how much we pay in comparison to other countries!!

Fuel prices are surging again, with diesel already pushing past 180p per litre and petrol pushing past 180p. Industry forecasts now suggest diesel could hit £2 a litre within weeks if global supply disruptions continue. For a typical 55-litre family car, that means £120 just to fill up. For working people, that is not an inconvenience, it is a direct hit on living standards.

The government’s response? Words, warnings, and very little else. Motorists in England are being taken for a ride and not the kind that gets you anywhere.

At the heart of the crisis is the sharp rise in global oil prices following escalating conflict in the Middle East and disruption in the Strait of Hormuz. Brent crude has surged from around $73 to over $100 a barrel. Every $10 increase adds roughly 7p per litre at the pump.

But global pressures alone do not explain why drivers across England and Wales are being hit harder than many others. The UK’s fuel pricing structure is a major part of the problem. Drivers are paying:

• Fuel duty: 52.95p per litre
• VAT: 20%, applied to both the fuel and the duty

This creates a compounding tax burden where the government profits more as prices rise. Estimates suggest the Treasury is taking an additional £91 million per month in VAT alone due to higher fuel prices.

Why England is Hit So Hard

The UK economy is heavily dependent on imported oil and gas, mainly from the US and Norway, and sells much of its own North Sea oil abroad for refining. This leaves domestic prices exposed to volatile global markets, with limited capacity to cushion shocks. This economic instability is part of a wider trend of hospitality on the brink where fair pay and security are needed now to protect workers from these rising overheads.

Instead, working people across England face a double squeeze: rising fuel costs and rising household bills from April. For many—particularly delivery drivers, care workers, and tradespeople—this is unsustainable. It also disproportionally affects people outside major cities where public transport is unavailable and workers rely on cars for work and basic household supplies.

What Could Be Done

If the government is serious about protecting working people, immediate steps are needed:

• Cut VAT on fuel or remove VAT from fuel duty
• Introduce a temporary fuel price stabilisation mechanism
• Increase transparency and regulation of pump pricing
• Expand investment in domestic refining and energy resilience

How Workers Can Cut Costs Now

• Use supermarket forecourts (typically 3–5p cheaper per litre)
• Avoid motorway service stations if you can
• Compare prices using apps like PetrolPrices or RAC Fuel Watch
• Drive efficiently: steady speeds and correct tyre pressure

UK Pump Prices vs Averages (March 2026)

Global Fuel Price Comparison (Approximate, March 2026)

UK Fuel Tax Breakdown (Per Litre, Approximate)

Statement from Stephen Morris, General Secretary, Workers of England Union:

“This is not just about fuel, it is about fairness. Working people across England are being hammered while the British Treasury quietly benefits from rising prices. Other countries have stepped in to protect their workers. The British government has chosen not to. That is a political decision, and it must be challenged. If fuel hits £2 a litre, it will not be an accident, it will be the result of inaction.”

References

(RAC Fuel Watch data (March 2026), International Energy Agency (IEA) reports on oil supply disruption, UK Department for Energy Security and Net Zero statistics, Industry analysis from Onyx Capital and PRISM Strategic Intelligence, European fuel pricing comparisons.)