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UK fuel prices are up almost 30% in a year. Shoppers will pay for it too

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Motor fuel prices in the UK rose by 29.8% in the 12 months to September 2026, and diesel averaged 192.5p a litre, its highest level since July 2022. Fuel made the largest upward contribution as headline inflation jumped to 3.5%. Logistics UK warns that hauliers will not be able to absorb all of these costs, and that much of the increase will end up in the prices consumers pay. The figures come just a week before the Budget on 28 October.

There is a person behind this text – not artificial intelligence. This material was entirely prepared by the editor, using their knowledge and experience.

Key points:

  • According to the ONS, motor fuel prices rose by 29.8% in the year to September 2026, up from 23.0% in August.
  • Diesel averaged 192.5p a litre in September (highest since July 2022) and petrol 169.5p (highest since August 2022).
  • CPI inflation rose to 3.5% from 3.1%, with motor fuels making the largest upward contribution.
  • Logistics UK says inflation for liquid fuels, vehicle fuels and lubricants reached 31.9%, the highest since August 2022.
  • The organisation expects operators to pass much of the cost on to customers, and ultimately to shoppers.

Diesel up 10.7p in a single month

The latest consumer price inflation figures from the Office for National Statistics (ONS), published on 21 October, show how fast fuel costs climbed in September:

  • diesel averaged 192.5p a litre, up 10.7p from August, the highest price since July 2022,
  • petrol averaged 169.5p a litre, up 8.2p from August, the highest since August 2022,
  • in September 2025, by contrast, prices fell slightly, by 0.4p for diesel and 0.2p for petrol.

As a result, overall motor fuel prices were 29.8% higher than a year earlier, compared with a rise of 23.0% in the 12 months to August. Transport inflation rose to 6.6% from 4.6%, and motor fuels were the main reason.

Headline CPI inflation rose to 3.5% from 3.1% in August, while CPIH, which includes owner occupiers’ housing costs, rose to 3.6% from 3.3%. Core inflation, which excludes energy, food, alcohol and tobacco, went up to 2.8% from 2.6%.

Logistics UK: “much of the increase” will reach consumers

In its response to the figures, Logistics UK said inflation for liquid fuels, vehicle fuels and lubricants reached 31.9%, the highest since August 2022.

Ben Fletcher, Chief Executive of Logistics UK, noted that the ONS identified transport, and particularly motor fuels, as the largest upward contribution to the rise in inflation. He linked the jump in fuel prices to the conflict in the Middle East, which is squeezing operating costs across the logistics sector.

According to Fletcher, operators will absorb some of the increase through lower margins and efficiency gains, but much of it will feed through into wider inflation, and ultimately into the prices consumers pay. Logistics UK has more than 22,000 members and says the sector employs 8% of the UK workforce.

What it means for hauliers

Fuel is one of the largest operating costs for road transport companies, so a monthly jump of more than 10p a litre on diesel hits margins quickly. Hauliers without fuel surcharges or fuel indexation clauses in their contracts carry most of the risk themselves until rates are renegotiated.

Operators should check that their contracts allow fuel costs to be passed on, update their cost calculations for the coming months and talk to customers early, before the next round of rate negotiations.

The pressure on diesel has been building for weeks. As trans.info has reported, UK diesel was already closing in on £2 a litre, while the IEA warned that the diesel supply squeeze may last well into 2027.

All eyes on the Budget on 28 October

The inflation data arrive just a week before the Budget. The Road Haulage Association has already set out its demands, including 15p a litre of fuel support. At the same time, a coalition of transport organisations is asking who will pay for the UK’s roads as fuel duty revenue falls.

The next ONS inflation figures, covering October, are due on 18 November.

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