Fuel at Nearly £2 a Litre Turns West of England Taxi Trade Into a 'Nightmare'

Petrol prices across the West of England have soared to nearly £2 per litre, and businesses from taxi firms to petrol stations say they can no longer make a profit.

The trigger sits far from Gloucestershire. Disruptions around critical shipping lanes like the Strait of Hormuz have tightened global oil supplies amid the ongoing conflict in the Middle East. The global oil price now stands above $108 (£80) per barrel, up from $70 (£52) in June 2026 — a roughly 50% rise in a matter of months.

For retailers, the squeeze is structural. Wholesale fuel deliveries cost more, and shop owners face a stark choice: pass the increase on to customers or forfeit their margins.

Pieter-Jon Allis, owner of Stroud Taxi in Gloucestershire, does not mince words about what that means at street level.

"Obviously it's a concern because our chief business cost on a day-to-day basis is fuel. I think we're headed for pretty tough times ahead," Allis said.

Customers comparison-shop, drivers absorb the cost

The pressure on Allis comes from two directions at once. Fuel is his largest daily cost. At the same time, customers hunt for the cheapest fare.

At least 50% of the calls he receives are quote requests, he said, as customers compare his pricing against other services such as Uber. That comparison shopping forces prices down precisely when costs are spiking.

"We're under a continual pressure to lowball ourselves and do prices we were doing 15 years ago, even though fuel prices are at an all time high," he said. "It's just a complete nightmare in that respect."

A postcode lottery at the pump

Pump prices across the region vary sharply, and geography dictates the pain. Rural areas pay more because of higher transport costs, lower sales volumes and a lack of local competition.

In Bristol, filling a tank costs an average of £1.70 per litre. Drive into Wiltshire and the picture darkens: some petrol stations in Hullavington charge £2.40 per litre. A petrol station in Upton Noble, Somerset, has raised prices to £1.86, while another near Whaddon charges £1.96.

Susannah Moffat, who runs Ledbury Road Services in Tewkesbury, Gloucestershire, said raising prices risks driving customers away.

"The last thing we want is to lose more trade," she said.

Her response has been to cut margin repeatedly rather than push prices higher.

"The only thing we can do is keep cutting our margin, time and time again, to try and keep the price increases to the minimum," she said.

The forecourt now leans on shop sales to stay afloat. "It's a difficult business to be in at the moment. Seems like there's no end in sight really, but hopefully it won't be forever," she added.

Even volunteer medical deliveries feel the hit

The fuel spike reaches beyond commercial operators. Freewheelers, a volunteer blood bike charity that supports the NHS by delivering lifesaving medical products, is burning through its reserves.

The organisation covers more than 220,000 miles (354,055 km) per year across Bristol, Somerset, Bath and west Wiltshire. Fuel is its lifeblood.

"We've spent £17,000 on fuel per year over the last couple of years," said Chris MacDonald, chair of the charity's Bristol branch. "This current year it's heading towards £22,000, so it's a significant jump."

That £5,000 increase lands on a charity funded solely by public fundraising. If fuel prices keep climbing, MacDonald said, Freewheelers would have to cut the number of "low priority" callouts it accepts.

"But we're not there yet. We can sustain the current situation for a while by digging into our reserves," he said.

What comes next

The arithmetic leaves little room for comfort. With oil holding above $108 a barrel and shipping lanes around the Strait of Hormuz still disrupted, West of England operators face a choice between shrinking margins, higher prices or reduced service — and reserves, whether corporate or charitable, only stretch so far.