Fuel inflation at 31.9% piles cost pressure on freight operators

ISSUE NO. 18

27 Oct 2026

Fuel inflation at 31.9% piles cost pressure on freight operators

Diesel eases slightly as government scraps planning permission for kerbside EV charging · 26 stories · 27 Oct 2026

Logistics UK reports motor fuel inflation of 31.9% behind September's headline CPI, warning that fuel costs are feeding into wider operating costs for freight operators and will pass into prices generally. Weekly diesel data show pump prices still 3.8p up on four weeks ago, with electric vans remaining cheaper per mile for higher-mileage fleets. Separately, government has scrapped planning permission for cross-pavement EV charging, cutting installation costs by up to £300 for drivers without driveways, though council authorisation is still required.

Logistics UK: motor fuel inflation of 31.9% piles cost pressure on freight operators

Logistics UK says September's Consumer Prices Index put headline inflation at 3.6%. It warns that fuel costs, which it links to the Middle East conflict, are raising operating costs for logistics operators and that much of the increase will pass into wider prices.

Illustration · THRIVE

Logistics UK chief executive Ben Fletcher, commenting on the CPI figures published on 21 October 2026, said inflation stood at 3.6% in September. He said motor fuel inflation was 31.9%, "the highest inflation rate for liquid fuels, vehicle fuels and lubricants since August 2022".

Citing the Office for National Statistics, Fletcher said transport, particularly motor fuels, made the largest upward contribution to the increase in inflation.

"This throws into sharp relief the financial pressure the logistics sector is under," he said. "The rapid rise in fuel inflation, driven by the conflict in the Middle East, has a direct effect on logistics operating costs, which will have a knock-on impact on the prices people pay in the shop."

Fletcher said operators have limited room to soak up the rise: "Fuel, energy, tyres, maintenance, vehicles, insurance and labour are non-negotiable charges and, while operators will attempt to absorb some increases through lower margins and improved efficiency, much of this increase will ultimately drive further inflation across the wider economy."

According to government (DESNZ) figures tracked by THRIVE, the UK average diesel pump price was 199.3p a litre in the week of 19 October 2026, down from 200.0p the week before.

(Source: freightweek.org)

The numbers

What THRIVE tracks, and what it means for your fleet this week.

Electric vans already beat diesel for any van covering more than 8,561 miles a year, provided charging happens at home rather than at 79p public rapid chargers.

Diesel, UK average

199.3p

▼ -0.7p on the week, +3.8p in four weeks

Diesel at 199.3p is still dear; a 0.7p weekly dip does little against a 3.8p rise in four weeks.

Pump price per litre, week of 19 Oct. Petrol 174.6p.

Fleet Cost Index

2.68×

▼ -0.01 on the week

An electric van fuels for 9.4p a mile against 25.2p for diesel, so switching cuts running costs.

A diesel van costs 2.68× as much to fuel per mile as an electric one: 25.2p against 9.4p at HMRC's advisory electric rates, week of 19 Oct.

Electric van break-even

8,561 miles

a year

Any van doing more than 8,561 miles a year recovers its electric premium; at 18,000 miles it saves £2,839.

Above this, fuel savings cover an electric van's list-price premium after the van grant, spread over four years. At 18,000 miles a year it saves £2,839.

Public rapid charging

79p/kWh

3.0× home

Public rapid charging costs three times home rates; plan around home charging or the savings shrink fast.

Zapmap average for September, against 26.3p under the household price cap from 1 Oct. Slower public chargers average 54p.

Electric share of new registrations, September

Cars 28.3% · Vans 9.6%

Electric vans are at 9.6% against a 24% target; use that gap as leverage when negotiating prices.

SMMT figures. This year's ZEV mandate targets: cars 33%, vans 24%.

Advisory fuel rates, from 1 Sept

Diesel 15p to 22p

Rates hold until the 1 Dec review; check mileage reimbursement policies now, as diesel's 22p top rate may move.

HMRC pence per mile for company car business travel, by engine size: diesel 15p, 16p, 22p. Electric 7p at home, 15p public. Next review 1 Dec.

Coming up

1 Dec

HMRC advisory fuel rates change

1 Jan

ZEV mandate 2027 targets apply

6 Apr

New tax year: company car tax rates step

Explore THRIVE data →

Sources: DESNZ, HMRC, SMMT, Ofgem, Zapmap and THRIVE's own calculations.

// ALSO THIS WEEK

POLICY & TAX

Six-point checklist issued by AFP in response to 2026 Budget

The Association of Fleet Professionals (AFP) has given fleets a six-point checklist after the 28 October Budget, starting with the benefit-in-kind tables now extended to 2030-31 and ending with a total cost of ownership review of PHEVs against BEVs under Euro 7. Dale Eynon, its government affairs and policy lead, calls it a mixed Budget: he welcomes the BIK certainty and the one-point rise to 10% in 2030-31, but says the Budget made no changes to the latest VED proposals despite the issues the AFP has raised, and urges fleets to prepare their mileage reporting before the scheme arrives in 2028. The press release is published below as supplied.

Dale Eynon, government affairs and policy lead at the Association of Fleet Professionals

Photo: Association of Fleet Professionals

A six-point checklist has been issued by the Association of Fleet Professionals (AFP) in response to yesterday’s Budget, the first from Andy Burnham’s government and Chancellor John Healey.

Fuel inflation at 31.9% piles cost pressure on freight operators

Logistics UK: motor fuel inflation of 31.9% piles cost pressure on freight operators

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