Motorists have shelled out extra £10billion at the pumps because of Iran war, research shows, piling pressure on Chancellor John Healey to ditch Labour's planned Fuel Duty hike in the Budget

Published: 08:17 EDT, 25 October 2026 | Updated: 08:26 EDT, 25 October 2026 Motorists have shelled out an extra £10billion at the pumps because of sky-high fuel prices sparked by the Iran war, research shows.The study found the extra forked out by petrol drivers surged past £3billion this week and £7billion for diesel motorists.It means the conflict has on average collectively cost UK drivers an extra £42million a day to fill-up over the last eight months, when compared with prices before the war started on February 28.In turn, Chancellor John Healey has raked in a VAT windfall of nearly £1.7billion because the 20 per cent levy accounts for a larger amount going towards Treasury coffers when pump prices are higher.The RAC Foundation study, which looked at daily consumption levels and pump prices compared to before the war, sparked fresh calls today for Mr Healey to abandon Labour’s planned Fuel Duty hike in Wednesday's Budget to help out hard-pressed motorists and keep inflation down.It comes as global oil prices hit their highest for more than six months this week amid fears of fresh escalation in the Middle East conflict.Brent crude, the international benchmark for oil, surged past $117 a barrel at one point – its highest level since April. Chancellor John Healey has raked in a VAT windfall of nearly £1.7billion thanks to higher pump prices since the Iran war Motorists have shelled out an extra £10billion at the pumps because of sky-high fuel prices sparked by the Iran war, research shows Tory shadow transport minister Greg Smith said hiking Fuel Duty would be 'just plain wrong in this global climate' It suggests motorists face more pain at the pumps for months to come, just as energy bills are also set to rise in January, squeezing households further.Tory shadow transport minister Greg Smith said: ‘Labour has a choice to make: are they on the side of motorists trying to get about their daily lives, or are they continuing their endless war on the motorist?‘Hiking Fuel Duty is just plain wrong in this global climate, and I fear Labour will once more bleed out drivers at the pumps.’AA President Edmund King said: ‘A worker driving 15 miles each way is now facing a petrol bill around £330 a year higher than before the Iran conflict.‘For someone on a lower income, that is a significant extra cost just to earn a living. Working people and businesses need meaningful relief at the pump.’He said the 5p a litre relief, first introduced by the Tories in 2022 amid sky-high prices sparked by Russia’s invasion of Ukraine, should be extended with a further 5p slashed from Fuel Duty. The levy is currently charged at 52.95p a litre.Under current plans, Fuel Duty will rise by 3p per litre on January 1, with another 2p rise on March 1.The Treasury is also scheduled to end the 16-year freeze on Fuel Duty next year, adding a further 1p in April.VAT will add another 1.2p a litre. The combined 7.2p increase would add almost another £4 to the cost of filling up the average family car.Reports have suggested that Mr Healey will delay the New Year Fuel Duty hike in Wednesday's Budget, but it’s unclear how long for.It would potentially cost him several billion pounds at a time when he’s struggling to balance the books.On Friday, average diesel forecourt prices were hovering around £2 a litre, while petrol was just under 174p.Before the war, they were 142.38p a litre and 132.83p respectively.It means filling up the average family car with petrol is £23 more costly now than before the war and £31 for diesel.The Treasury was contacted for comment.