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Fuel is at its highest since 2022: a cost plan for van businesses

Petrol reached 161.6p a litre on 28 August and fuel duty rises in January. Here is what that costs a single van, and the two finance options worth comparing before then.

Reading time 4 min read

Category Business guides

Written by The bizbritain team

Fuel got more expensive over the summer. It is due to get more expensive again in the new year. Petrol is now at its highest level since November 2022, and the duty cut that has held pump prices down since 2022 starts to be reversed in January. If your business runs a van, both of those land on the same line of your accounts.

Section 01

Where fuel prices actually are

According to the AA, the average price of petrol reached 161.6p a litre on 28 August 2026. Diesel reached 183.4p. The AA says petrol has not been this expensive since November 2022.

The move has been quick. According to PetrolPrices, the average was around 156p for petrol and 174p for diesel in late July. That is a rise of roughly 5p on petrol and 9p on diesel in a month.

It also lands on a busy weekend. The RAC forecasts 20 million leisure car trips between Friday 28 August and Monday 31 August. That is the highest figure since its records began in 2015. Roads will be slower, and slower miles cost more.

Section 02

What that costs a van, in pounds

A worked example is more useful than a percentage. Take one van covering 20,000 miles a year at 35 miles per gallon. That is about 2,600 litres of fuel.

At 183.4p a litre, that van now spends about £4,764 a year on diesel. At late July prices it would have spent about £4,519. One month of price movement added roughly £245 a year to a single van.

Now multiply by the size of your fleet. Five vans on those figures is about £1,225 a year of new cost. It arrives quietly, because it leaves the bank in small amounts at the pump.

161.6paverage UK petrol price on 28 August 2026, per the AA

183.4paverage UK diesel price on the same day

5pfuel duty rise due in two steps, January and March 2027

£130what that duty rise costs a van doing 20,000 miles a year

Section 03

The duty rise is in January, not September

This one is worth getting right, because the wrong date is circulating widely.

Myth 01

“Fuel duty goes up on 1 September”

Several fuel price sites have said the temporary cut ends this September. According to the published fuel duty rates on gov.uk, it does not.

The 5p cut runs until 31 December 2026. From 1 January 2027 the rate rises from 52.95p to 55.95p a litre. From 1 March 2027 it returns to 57.95p, where it sat before March 2022.

So you have until the end of December at the current duty rate. Use that window to plan, rather than to wait.

For the van in the example above, the full 5p works out at about £130 a year. That is smaller than the price move already behind us. It is also the part you can see coming.

Section 04

Three moves that take the pressure off

Reprice the work that travels furthest
Work out your cost per mile at today's price, not at last year's. Then look at the jobs that involve the longest journeys. Some of them will still be worth doing. Some will need a different price.
Look at the vehicle, not only the fuel
A more efficient van, or an electric one, changes the number permanently. The barrier is usually the cash needed up front. Asset finance spreads that cost over the years the vehicle is working, so the monthly payment sits against the saving it produces.
Give yourself a cash cushion
Fuel is paid for today. The job it was burned on is often paid for in 30 or 60 days. A working capital facility covers that gap, so a cost rise does not turn into a payment problem.

None of these is urgent this week. All three get harder in January, when the duty rate moves and every other winter cost arrives at once.

If you are weighing a new van against a cash flow facility, compare both before you commit. bizbritain helps van and trade businesses work out which product fits, then takes the case to the right lenders.

This guide is general information, not financial advice. Applications are subject to status, affordability and lender criteria.

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