The cost of filling a large HGV had risen by 31% to nearly £1,000 over the past three months, while crude oil was above $110 a barrel, Logistics UK chief executive Ben Fletcher has told LondonLovesBusiness. The warning comes as Chancellor Rachel Reeves is reportedly preparing to cancel a planned 1p fuel-duty rise and may also halt the wider 5p increase due to be phased in over the following six months.
The pressure is already visible among operators. In Shropshire, one haulier says filling its depot tank now costs £6,000 more, while another has reported a 36% jump in fuel costs since the war in Iran began. Both firms say higher fuel bills are now moving into customer charges and, ultimately, the cost of goods and services.
Fuel-duty rise would add to pressure, says Logistics UK
Logistics UK has been urging the government for weeks to reconsider the planned increase in fuel duty, warning that higher logistics costs risk feeding through into prices across the economy.
In April, the trade body called for a wider support package for the sector, including action on fuel duty, electricity costs, low-carbon fuels and business rates. It said rising costs linked to the Middle East conflict could have a knock-on impact on the UK economy.
The organisation said the pressure was being felt most keenly by SMEs, which often cannot pass higher fuel costs on to customers. Fletcher said in April that fuel had become the single biggest concern for member businesses, while the Treasury had already benefited from more than £40 million in additional VAT receipts between the end of February and 6 April because of higher fuel prices.
The planned fuel-duty increase was due to begin in September, when rates were expected to rise by 1p per litre as the first stage of a phased 5p increase by March 2027.
Operators say costs are already being passed on
The pressure is also showing up at operator level. In Shropshire, two hauliers told the Shropshire Star that higher fuel costs were already forcing them to seek support from customers.
Salop Haulage, based in Shrewsbury, said the cost of filling its 16,000-litre depot tank was now up to £6,000 higher. Transport manager Duncan Harris said the firm had increased delivery charges by around 10%, as had many other hauliers it deals with.
Edwards Transport, which operates 60 artic lorries from Hinstock near Market Drayton, reported a 36% rise in fuel costs in the month after the Iran war began. Simon Thompson, the company’s head of warehousing, said the firm had asked customers for support, but warned that the pressure becomes harder to absorb further along the supply chain.
“These products could then become more expensive for the end customer, that’s a realistic possibility,” Thompson told the paper. He added that fuel costs affect far more than hauliers and motorists, saying fuel is “woven into almost every business and service.”
Diesel has been hit harder than petrol
The diesel increase has been sharper than the rise in petrol prices. The House of Commons Library said fuel prices had been relatively stable between summer 2025 and early 2026, at around 135p per litre for petrol and 143p per litre for diesel. After US and Israeli strikes on Iran began on 28 February, weekly data showed prices rising in the first three weeks of March by 12p per litre for petrol and 25p per litre for diesel.
A separate Commons Library economic update said petrol rose by 14p per litre between 28 February and 23 March, while diesel rose by 29p per litre over the same period.
Logistics UK has warned that the sector’s costs cannot continue rising without consequences for the wider economy. In its April statement, the organisation said logistics companies move the goods that businesses and households rely on every day, and that support was needed to avoid pushing up the cost of living and harming growth.
