Workers Paying £330 More A Year To Get To Work As AA Calls For Fuel Duty Cut

• Petrol is 32% more expensive than before the Iran conflict, adding around £330 a year to the fuel bill of a worker commuting 15 miles each way

• Hospital cleaners, shop workers, warehouse staff and other shift workers may have little choice but to drive to work

• The AA calls on the Chancellor to maintain the existing 5p fuel duty reduction and cut duty by a further 5p a litre

• “For millions of people, filling up isn’t discretionary spending, it’s part of the cost of going to work” AA president

Workers who have little choice but to drive are paying hundreds of pounds more a year simply getting to work following the surge in fuel prices since the start of the Iran conflict, The AA warns.

Petrol averaged 174.27p a litre at 4pm on Friday afternoon (16 October), according to The AA’s analysis of the Government’s Fuel Finder data.

That is 42.56p a litre, or 32.2%, higher than the 131.71p average recorded in the week immediately before the Iran conflict.

The AA calculates that someone commuting 15 miles each way, five days a week, in a petrol car averaging 40 miles per gallon could now spend around £1,367 a year on fuel over 46 working weeks.

At pre-conflict petrol prices, the same commute would have cost around £1,033, meaning the worker is now paying approximately £334 more a year just to get to work.

The AA says the additional cost will be particularly difficult for lower-paid workers who cannot work from home and may have little practical alternative to driving.

Hospital cleaners and porters, supermarket and other shop workers, warehouse staff, cleaners and security workers can all work shifts at times when public transport options may be limited.

Unlike business mileage, the normal journey between home and a regular workplace is paid for from the worker’s own pocket.

Diesel drivers face even bigger increase

The pressure is also being felt by people who rely on their vehicles to earn a living.

Diesel averaged 199.27p a litre on Friday afternoon, up from 141.46p before the conflict. That represents an increase of 57.81p a litre, or 40.9%.

A typical 55-litre diesel fill now costs around £110.00, compared with £77.80 at pre-conflict prices, an increase of almost £32 a tank.

Taxi and private-hire drivers, delivery drivers, tradespeople and other small businesses can cover significantly higher mileages, meaning rising fuel prices feed directly into the cost of earning a living.

AA calls for further 5p fuel duty cut

The AA is calling on the Chancellor to protect the existing 5p fuel duty reduction at the Budget on 28 October and go further by cutting duty by another 5p per litre.

Once VAT is taken into account, the additional cut would be worth around 6p a litre at the pump, provided it is passed on in full. That would save approximately £3.30 on a typical 55-litre fill.

The AA says reducing fuel costs would provide direct help to workers who need their cars to get to work, as well as lowering costs for small businesses and people who drive for a living.

Edmund King, AA president, said: “For millions of people, filling up isn’t discretionary spending, it’s part of the cost of going to work.

“A hospital cleaner starting an early shift, a supermarket worker travelling home late at night or a warehouse worker starting before public transport is running can’t simply choose to work from home.

“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.

“Then there are taxi and delivery drivers, tradespeople and small businesses whose vehicles are essential to their work. With diesel around £2 a litre, their fuel bills have risen dramatically too.

“That’s why we’re asking the Chancellor to protect the existing fuel duty cut and go further with another 5p reduction. Working people and businesses need meaningful relief at the pump.”

Shopping around can cut the cost

There are signs that fuel prices are beginning to ease, but falls at the pump remain small.

More forecourts are now cutting prices than increasing them, but with petrol still averaging 174.27p a litre and diesel 199.27p, The AA says drivers have yet to see meaningful relief at the pumps.

Drivers can reduce costs by shopping around, with supermarkets currently averaging around 3p a litre less for petrol and nearly 4p less for diesel than non-supermarket forecourts. Where drivers live can also make a difference, with recent AA analysis showing a North-South petrol price gap of almost 3p a litre, leaving drivers in the South East paying more on average than those in northern England.

The AA App allows drivers to compare fuel prices at nearby forecourts before filling up, helping them find cheaper fuel in their area.

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The commuting calculation assumes a 30-mile daily return journey, five days a week for 46 working weeks, giving annual mileage of 6,900 miles. Fuel consumption is based on a petrol vehicle averaging 40 miles per gallon.

At 174.34p a litre, the estimated annual fuel cost is £1,367. At the pre-Iran conflict price of 131.71p a litre, the equivalent cost is £1,033, a difference of approximately £334.

Current fuel prices are from The AA’s analysis of the Government’s Fuel Finder data at 10am on 16 October 2026, from price updates submitted by retailers in the past 30 days.

The AA is calling for the existing 5p-per-litre fuel duty reduction to be maintained and for duty to be cut by a further 5p per litre. The AA calculates the additional reduction would be worth approximately 6p a litre at the pump once VAT is included, if passed on in full.

Questions and Answers

Why is The AA calling for another fuel duty cut?

Fuel prices remain significantly higher than before the Iran conflict, putting additional pressure on workers who need to drive to work and businesses that rely on vehicles. The AA is calling on the Chancellor to maintain the existing 5p fuel duty reduction and cut duty by a further 5p a litre.

How much have petrol prices risen since before the Iran conflict?

Petrol averaged 174.27p a litre on 16 October, compared with 131.71p in the week immediately before the conflict. That is an increase of 42.56p a litre, or 32.2%.

How much more could workers be paying to get to work?

The AA calculates that someone commuting 15 miles each way, five days a week, in a petrol car averaging 40 miles per gallon could spend around £1,367 a year on fuel over 46 working weeks. At pre-conflict prices, the same commute would have cost around £1,033, a difference of approximately £334.

Which workers are particularly affected by high fuel prices?

Workers who cannot work from home and have limited alternatives to driving can be particularly exposed. This can include hospital cleaners and porters, shop workers, warehouse staff, cleaners and security workers, particularly those working early, late or irregular shifts.

Why can't these workers claim their fuel costs back?

The normal journey between someone's home and their regular workplace is a commuting cost paid by the worker. This is different from business mileage undertaken as part of someone's job.

What is happening to diesel prices?

Diesel averaged 199.27p a litre on 16 October, compared with 141.46p before the Iran conflict. That is an increase of 57.81p a litre, or 40.9%.

How are high diesel prices affecting businesses?

Taxi and private-hire drivers, delivery drivers, tradespeople and other small businesses can cover significant mileages as part of their work. With diesel around £2 a litre, fuel represents a substantial day-to-day cost for many of these drivers and businesses.

What difference would The AA's proposed fuel duty cut make?

The AA is calling for fuel duty to be cut by a further 5p a litre. Once VAT is taken into account, this would be worth around 6p a litre at the pump if passed on in full, saving approximately £3.30 on a typical 55-litre fill.

Are fuel prices starting to come down?

There are signs that prices are beginning to ease, with more forecourts cutting prices than increasing them, but falls remain small. The AA says drivers have yet to see meaningful relief at the pumps.

How can drivers reduce what they spend on fuel?

Shopping around can make a difference, with supermarkets currently averaging around 3p a litre less for petrol and nearly 4p less for diesel than non-supermarket forecourts. The AA App allows drivers to compare prices at nearby forecourts before filling up, while recent AA analysis has also highlighted regional differences in pump prices.