UK motorists are spending an average of £18.20 more each time they fill up.

It follows the recent fuel price increases caused by the Israeli/US attacks on Iran and the blocking of the Starits of Hormuz.

Many households admit to driving less and cutting back on everyday spending to cope with rising costs as the economic backlash hits home.

Stay at home

New research from temporary car insurance provider Tempcover has found that 44% of drivers have reduced the amount they drive since fuel prices began climbing in March 2026, while almost nine in ten (88%) are concerned about further increases at the pumps.

The survey of 2,000 petrol and diesel drivers highlights the growing financial pressure on motorists, particularly as global oil markets remain volatile amid tensions in the Middle East and supply chain disruptions.

At present, there is no sign of an imminent resolution of the conflict and its subsequent blocking of significant world oil supplies, as well as many other essential world product supplies.

Diesel drivers have been hit particularly hard, reporting an average increase of £23.10 per tank, compared with £18.20 across all respondents.

Out of pocket

The findings come despite Chancellor Rachel Reeves recently confirming a further freeze on fuel duty, maintaining the long-standing 5p-per-litre cut first introduced in 2022.

However, while the duty freeze has prevented prices from rising even further, wholesale fuel costs have continued to fluctuate, feeding through to forecourt prices.

The latest monitoring report from the Competition and Markets Authority (CMA), published in May 2026 following the Middle East conflict and resulting oil price increases, found that the sharp rise in petrol and diesel prices was primarily driven by higher wholesale fuel and oil costs rather than retailers increasing their profit margins.

Average fuel margins remained broadly unchanged during the period examined.

CMA chief executive Sarah Cardell said the regulator’s enhanced scrutiny appeared to be working and that, on average, retailers had not increased margins during the crisis.

The RAC has previously warned that geopolitical tensions and oil price volatility could lead to sustained pressure on fuel prices throughout 2026, while AA data has shown motorists remain highly sensitive to changes in pump prices after several years of elevated living costs.

Food or fuel?

According to Tempcover’s research, drivers are actively changing their behaviour in response.

Nearly two-thirds (62%) said they are cutting non-essential journeys, while 39% are choosing to walk or cycle more often.

More than a quarter (26%) are using public transport more frequently.

A third are reducing long-distance travel and combining multiple journeys into one trip to improve efficiency, while almost a quarter (24%) are planning routes more carefully to minimise mileage.

The impact is also being felt beyond motoring budgets.

Almost half (49%) of drivers said they have reduced spending elsewhere to afford fuel, with eating out and takeaways the most common casualty.

More than a quarter (28%) have cut spending on restaurants and takeaways, while 23% have reduced non-essential shopping and 21% have cut back on social activities.

More worryingly, 12% reported reducing grocery spending, while 13% said they had dipped into savings or investments to cover rising motoring costs.

Look and learn

Drivers are also becoming increasingly strategic about refuelling.

More than a quarter (28%) now closely monitor their fuel consumption, while one in five delay filling up until absolutely necessary.

Some 19% actively seek out cheaper forecourts, and 14% are using fuel price comparison apps.

The CMA’s report found significant variation in prices between nearby forecourts. 

It found that motorists could save up to £9 per tank by comparing prices and choosing cheaper filling stations.

This has been one of the main drivers behind the introduction of the government’s new Fuel Finder scheme, which requires forecourts to provide near real-time fuel price data.

Looking at alternatives

Claire Wills-McKissick, temporary car insurance expert at Tempcover, says: “Rising fuel prices are putting real pressure on household budgets, leading many drivers to change everyday behaviour behind the wheel.

“We’re seeing a shift towards more conscious driving, combining journeys or cutting back where they can to help manage the cost of getting from A to B.”

The research also suggests higher fuel costs may be accelerating interest in electric vehicles.

Nearly a quarter (24%) of motorists said they would be more likely to switch to an EV if fuel prices remain elevated, while 28% are considering a hybrid as their next vehicle.

That comes as Zapmap recently reported that annual fuel cost savings from running an electric vehicle instead of a petrol or diesel car reached a record £960 in April 2026 for drivers using a typical mix of home and public charging.

World on wheels

Despite the financial strain, motorists remain heavily dependent on their vehicles.

Just 9% said they would consider giving up car ownership altogether, while 44% said they definitely would not.

The findings underline how rising fuel costs continue to influence not only travel habits but wider household finances, even as drivers explore more efficient and lower-cost alternatives.