Millions of British van drivers are facing a combined £2.5 billion increase in diesel costs this year, prompting calls for the government to abandon its planned fuel duty rise. According to analysis conducted for the Guardian, owners of diesel vans and pickups are expected to spend nearly £8.5 billion at the pump in 2023, a significant rise from the £5.95 billion spent last year.
Rising Diesel Prices
The surge in diesel prices is attributed to a global fuel shortage, driven by disruptions to refineries in the Middle East and Russia. Analysts at Moneysupermarket estimate that the average fuel bill for a van driver could reach £1,965 this year, up from £1,294 in 2022, based on typical mileage and fuel consumption.
The number of vans on British roads has increased significantly due to the boom in online shopping, home deliveries, and a growing number of self-employed individuals in trades. Despite a rise in electric van adoption, approximately 95% of light commercial vehicles are still diesel-powered.
Economic Impact
This month, the average pump price for diesel surpassed £2 per litre for the first time, marking an increase of over 40% since late February, when the US-Israel conflict began disrupting crude and refined oil supplies from the Gulf. This price hike is expected to lead to increased costs for food and goods transported by road, as retailers may pass on these logistics costs to consumers.
