02/10/2026
Diesel has hit another record—but how much of what we pay is actually tax?
The average price of diesel has reached 199.18p per litre, meaning it now costs around £109.55 to fill a typical 55-litre tank.
But the diesel itself isn’t costing you £1.99 per litre.
Around 52.95p from every litre is fuel duty, with another 33p or so added in VAT.
That means the Government takes approximately 86p from every litre sold—or around £47 every time you fill a 55-litre tank.
Not bad going for somebody who didn’t extract it, refine it, transport it or stand behind the counter selling it.
We keep hearing that prices are rising because of world events and supply shortages. That may be true—but the Government could still reduce fuel duty or VAT during exceptionally difficult times.
It simply chooses not to.
Britain has also allowed its own refining industry to shrink. The closures of the Grangemouth and Lindsey refineries reduced UK refining capacity by almost a quarter.
We now import around 55% of the diesel used on British roads, leaving us increasingly dependent on overseas refineries, overseas supplies and whatever chaos happens to be unfolding elsewhere in the world.
And when diesel goes up, everything goes up.
Lorries deliver our food. Vans keep businesses moving. Farmers, builders and tradespeople rely on diesel vehicles and machinery. Those increased costs eventually find their way into the price of almost everything we buy.
So perhaps the question isn’t simply:
“Why is diesel so expensive?”
Perhaps it should be:
“How much could the Government knock off the price—and why isn’t it doing it?”
