Three in 10 petrol and diesel drivers are being forced to give up their cars as high fuel prices from the Iran conflict create a 'painful' crisis, according to new RAC research. The study also found that three in 10 drivers are now more likely to consider an electric vehicle (EV) next time they change their car, directly due to elevated pump prices.
Pump Prices Remain Elevated
Although the cost of filling up has fallen in recent weeks, pump prices remain far above pre-war levels. The average cost of filling a petrol family car is still £13 higher than in late February, while an equivalent diesel car costs £20 more. This has prompted more drivers to seriously consider switching to electric vehicles.
RAC senior policy officer Rod Dennis said: “This year is proving to be a record year for EV registrations, and our latest figures show the ongoing conflict in the Middle East is steering ever more drivers towards one next time they change. After all, having a vehicle that doesn’t run on petrol or diesel can make a lot of financial sense, especially for those who can charge up cheaply at home.”
Impact on Households and Younger Drivers
Dennis added: “But there’s no getting away from the fact the Iran war is casting a growing shadow over the millions of households who rely on petrol and diesel cars. So many drivers tell us they’re having to cut back on other spending just to afford to keep their cars running – which is further confirmation, as if it was needed, of just how car-dependent we are as a nation.”
Younger drivers are feeling the pain most acutely, with a third cutting back on other spending significantly to afford fuel, and around a quarter using their cars less to save money.
Wider Economic Consequences
“And it’s important to remember that every pound spent on fuel is a pound not being spent somewhere else – such as the local high street. So high fuel prices are bad news not just for households, but for the wider economy too,” Dennis said.
“The cost of filling up might be falling at the moment, but with no resolution to the Iran war in sight, oil prices remain elevated which is keeping pump prices at a far higher level now than they were in February. And there’s a further sting in the tail coming – high fuel and energy costs mean inflation is expected to increase later this year, putting yet more pressure on the wallet.”
