UK Diesel Hits Record £2/Litre as Iran War Squeezes Operators

Diesel in the West of England has reached an all-time high of about £2 a litre, up more than 40% since the end of February, when the US-Israel conflict with Iran escalated.

The spike is hitting every corner of the regional economy, from century-old coach firms to volunteer-run medical couriers. Station-level data shows prices climbing faster than the national average.

How steep is the cost climb?

Diesel has risen more than 40% since late February. Petrol has climbed nearly 34% in the same window. In the past month alone, diesel jumped 9% to 200.1p per litre and petrol climbed 8% to 174.8p per litre.

In real terms, that adds 59p per litre of diesel and 42.5p per litre of petrol. BBC analysis of Fuel Finder UK data found variation of up to 11p per litre for petrol between stations in the region, even excluding motorway services.

What is the government doing?

Chancellor John Healey acknowledged the squeeze at the Labour Party Conference. "I'm very aware as I prepare the budget - I'll deliver it a month today - that this needs to be a breathing space budget, recognising the cost of living and the cost of business pressures," he said.

Healey said he was "glad" to have frozen fuel duty until the end of the year. He pointed to the rollout of "fuel finder" apps that surface station-level pricing from a government dataset. But the duty will still rise 5p at some point by 2027.

How are operators absorbing the shock?

Berry's Coaches, a 100-year-old Somerset firm running five daily services from the South West to London, has taken a £750,000 hit this year. "We've absorbed a lot of that cost ourselves but unfortunately we've had to apply fuel surcharges across a number of our services - a £2 surcharge on each leg of the journey to London," Berry said.

Fuel costs at the company are up roughly 50% since the Middle East conflict began. The operator has weathered similar shocks before, Berry said, but called for deeper relief. "Really what we would like to see if further fuel duty cuts. That would be a huge benefit from the industry," he said.

How are charities coping?

Alex Wood of the Yeovil branch of Freewheelers, a charity delivering blood samples and medical supplies by motorbike, said operational costs are up 20% since January. "It's so unpredictable too," Wood said.

The charity is dipping into reserves and ramping up donations to stay operational. "We're having to do a lot more fundraising so that we can keep operating," Wood said. "We just have to keep going as best we can, we have to keep plodding on."

A Stroud-based taxi company separately told the BBC the situation was a "complete nightmare" as it faced "continual pressure to lowball" fares to keep customers.

Where is fuel most expensive?

Excluding motorway services, Somerset hosts the priciest petrol. Stanmoor Garage in Burrowbridge, Bridgwater, and Phillips Tyres in Castle Cary both charge 186.9p per litre. An Esso on the A303 in Warminster, Wiltshire, lists 185.9p.

For diesel, Kinch Fuel Oils in Malmesbury, Wiltshire, tops the region at 230.0p per litre. Shell's Bournville Service Station in Weston-super-Mare charges 208.9p. Inside Bristol, BP on St Andrews Road in Avonmouth lists 202.9p.

What comes next?

Healey's budget, due in a month, will determine whether the duty freeze extends or the 5p increase remains on the legislative books. For Freewheelers, Berry's Coaches and the small hauliers, coach operators and taxi firms across the West, the decision will set the cost of doing business into 2026.