Businesses across the West of England are reporting significant financial strain as petrol prices have climbed to nearly £2 per litre. The price increase stems from disruptions affecting critical global shipping lanes, particularly the Strait of Hormuz, amid ongoing conflict in the Middle East. These geopolitical tensions have driven crude oil prices above $108 per barrel, a roughly 50% increase from $70 per barrel earlier in June 2026.
Petrol prices vary considerably across the region, with urban areas such as Bristol averaging £1.70 per litre, while rural locations face considerably higher rates. Wiltshire stations are charging as much as £2.40 per litre, and stations in Somerset are positioned between £1.86 and £1.96 per litre. This disparity reflects higher transportation costs, lower sales volumes, and reduced competitive pressure in rural markets.
Taxi operators report particular difficulty adapting to the new cost structure. Pieter-Jon Allis, owner of Stroud Taxi in Gloucestershire, described the situation as a “complete nightmare,” noting that fuel represents his chief daily operating expense. He indicated that at least half of his incoming calls are price inquiries, with customers comparing his rates against ride-sharing alternatives. Allis stated that competitive pressure forces him to maintain pricing levels from 15 years ago despite current all-time-high fuel costs, which erodes profit margins significantly.
Fuel retailers face an uncomfortable choice between passing increased wholesale costs to consumers or accepting reduced profitability. Susannah Moffat, who operates Ledbury Road Services in Tewkesbury, Gloucestershire, expressed reluctance to raise prices due to concerns about losing customers. She indicated the station is increasingly relying on shop sales revenue to offset narrowing fuel margins.
Charity organisations relying on vehicle fleets have also felt the impact. Freewheelers, a volunteer blood bike service supporting the NHS, reported fuel expenses climbing from approximately £17,000 annually to a projected £22,000 this year. The organisation covers more than 220,000 miles annually across Bristol, Somerset, Bath, and west Wiltshire. While currently sustaining operations through reserves, leadership cautioned that continued price increases could necessitate reducing low-priority medical deliveries.
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