Rural drivers burned by 10% countryside fuel premium

Rural drivers are taking an extra hammering amid the petrol prices crisis, analysis shows.

The RAC Foundation study found prices have on average rocketed by up to 10 per cent more at forecourts in the countryside, when compared to urban areas.

Average petrol pump prices across the country soared by a record 20p a litre last month.

But the analysis found prices were on average more than 2p a litre higher in rural areas.

The figures show rural petrol prices have reached 156.15p per litre, compared with 154.07p in urban areas.  

Diesel is also up to 2p a litre more expensive in parts of the countryside, with an average rural price of 186.54p, compared to an urban figure of 185.09p, according to the study. 

Motoring groups said it showed rural drivers were being hit particularly hard by the rocketing pump prices, sparked by the Iran war and Tehran’s retaliatory blockade of the Strait of Hormuz, which has squeezed Western oil supplies.

They renewed calls on Chancellor Rachel Reeves to slash motoring taxes as she rakes in tens of millions of pounds more in VAT receipts due to higher pump prices.

AA president Edmund King said: ‘Drivers and businesses in rural areas are almost totally dependent on road transport due to the lack of public transport and longer distances travelled.

‘The car is not an optional extra but is a lifeline to rural dwellers.

‘They are being hit from both sides, as the fuel prices in rural areas are higher and more of them are dependent on diesel which has doubled compared to the rate of petrol since the Iran conflict started.

‘The Government is quids in due to the extra VAT paid to The Treasury as pump prices have rocketed, so perhaps some of that “free” money should be used to target rural garages to reduce their prices and keep them going as essential community hubs.’

Steve Gooding, director of the RAC Foundation, said it was a double whammy for rural drivers, adding: ‘Not only are those in the countryside paying more for fuel, they probably drive further too.

‘For many outside our bigger towns and cities using a car is, by necessity, built into their daily lives, leaving no alternative but to drive to get to work, the shops or doctor.’

The cost of filing up the average 55-litre tank in a family car rose £11 for petrol and £22 for diesel between 1 and 31 March across the country.

But for rural drivers this was on average £1.10 more for petrol, according to the RAC Foundation’s analysis.

In some rural parts of the country, it was the same for diesel, which across the country surged by an average of 40p a litre in March.

Last month’s rocketing pump prices were the biggest on record and larger than monthly increases sparked by Russia’s invasion of Ukraine in 2022.

Separate data shows drivers have collectively shelled out around £600million more than they would have done if pump prices had remained the same level before the Iran conflict broke out.

In turn, it means Chancellor Rachel Reeves has netted around £100million in extra VAT receipts because of higher prices, which attract more of the 20 per cent levy.

Despite growing calls, Labour is refusing to axe its planned 5p a litre hike to fuel duty, which comes into effect incrementally from this September. It will add another £3 to the cost of a fill-up.

While Labour is planning to put up motoring taxes, several other European countries have slashed them to help out hard-pressed drivers amid the crisis.