Iran war triggers sharpest drop in petrol demand for six years

UK petrol and diesel sales have dropped at the sharpest rate since the COVID-19 lockdowns, as drivers ration fuel amid soaring prices triggered by the US-Iran war.

According to official data released on Friday, May 22, motor fuel purchases have fallen by more than 10% in April in comparison to March.

This marks the biggest monthly drop since November 2020.

Due to this, overall retail sales went down by 1.3%, doubling the decline economists had forecast.

The Office for National Statistics said motorists are “conserving fuel after stocking up in March” when panic buying erupted at the start of the Middle East conflict.

Fuel prices have never been higher during wartime, with unleaded fuel averaging 159 pence per litre, having risen by 26 pence compared to the end of February.

Up to 20% of global oil and natural gas transportation usually goes through the Strait of Hormuz; however, the sea route is currently shut due to Iran and America exchanging attacks. Brent crude prices are still 70% higher this year.

On the other hand, according to GfK consumer confidence survey results, the number of families that rely on savings to cover daily expenditures continues to grow. Major purchases are down to January 2025 levels.

From July 2026, energy bills are expected to rise by 13%, with economists forecasting that even if a ceasefire is announced tomorrow, UK households will face elevated costs throughout winter.