London Daily

Focus on the big picture.
Friday, Jul 04, 2025

Cost of living: 'What do you put first? Food, heating or petrol?'

Cost of living: 'What do you put first? Food, heating or petrol?'

Fuel prices at UK pumps have hit all-time highs, and experts predict they will rise further due to the Ukraine crisis.

The average price for a litre of petrol has been heading towards 150p and diesel prices are also at a record.

At a toddler group in Woking, Surrey, children are happily playing with toy cars. But the cost of running real-life vehicles is an increasing worry for their parents and carers.

Mandy Watts depends on her car for work, but thinks "the cost of petrol has gone through the roof".

Going carless isn't an option for Mandy, but she is trying to use it less.

"Being a single parent as well, you have to think about these things. Is it petrol, is it food, is it heating, what do you put first? Food and heating has to come before petrol. So I tend to limit a little bit where I go now."
RAC fuel spokesman Simon Williams thinks high petrol prices are set to persist. "Any uncertainty on the oil market will keep prices high. And unless the pound gets stronger, I think drivers could be paying above 150p for some considerable time".

Oil rose above $100 per barrel after Russia began its invasion of Ukraine, and this is expected to filter down to the price drivers pay at the pump.

Back at the toddler group, Mariam Akhtar says she needs her car to get her two children to nursery and other activities, and for the supermarket shop.

She has also noticed fuel prices going up. Her regular £40-50 top-up disappears within a week.

"It really does hit our budget. I'm trying to save up for a house as well. So you're trying to [budget around] your petrol, your life, your kids' lives. I think I spend more money on petrol than my kids' essential things."

Mariam Akhtar says the cost of fuel is hitting her household budget


Businesses are feeling the pinch too.

Mike Cherry, chair of the Federation of Small Businesses, says spiralling fuel prices are hurting companies just when tax hikes and fresh business rates bills loom large.

He would like to see the government introduce measures in the Spring Statement which ease the cost of doing business, and make it easier to transition to low-emission vehicles.

"Close to half of small firms pointed to fuel as a main cause of rising costs last quarter, up from one in seven in the same period last year," he says.

"In remote areas, and especially in sectors where moving physical goods around is fundamental to business models, higher fuel prices will really be eroding bottom lines."

Kate Lester from Diamond Logistics says fuel costs are pushing up prices


Those challenges ring true for Kate Lester, founder and chief executive of courier network Diamond Logistics.

Its vans, motorcycles and lorries transport a wide range of goods, from blood products to electric car chargers.

As well as facing higher bills for filling up her firm's own vehicles, she says "we've got pressures on pricing from our suppliers, the carriers who dispatch our overnight and international consignments".

"Not only are they going up on an individual basis, we've got a variable fuel surcharge - and that can be as much as 25% at the moment."

Diamond Logistics has done what it can to mitigate the impact, but it has put up its prices recently. "That will be passed on our customers' customers too," Kate says. "We're going to see a rise in the price of goods as a result".

'Big impact'


It's not only couriers and haulage firms being stung by soaring prices at the pump.

Lee Harrison runs Rowland Harrison Ltd, a ground maintenance firm in Manchester. He's worried about the prospect of fuel costs continuing to rise.

"Our biggest overhead after wages is diesel for the vans and petrol for the tools. It's having a big impact".

"It's odd now that I'm filling one of these vans and the amount is over £100. I can't believe that, it's always been less than that in my lifetime."

Lee Harrison from Rowland Harrison Ground Maintenance is finding the cost of diesel hard to stomach


Turnover's the same, Lee says, "but the profit margin's getting squeezed and squeezed".

"We're going to have to look at things like, not change our fleet of vans for longer, make do and mend with the tools."

He expects he'll have to start charging customers more.

Lee also worries about the effect on his staff when he can't afford to put up wages further. "If their bills are going up, in effect they're getting a pay cut."

UK inflation has hit a 30-year high and the Bank of England has predicted it will reach 7% in the spring.

Anna Leach, from the CBI business group, says consumers are in "quite a vulnerable position", with their spending power affected by the rise in the energy price cap.

"Businesses as well have already been suffering from the impact of electricity costs as well. So this really doubles down on a situation which was already very bad for consumers and businesses."

She says rising prices could ultimately hit economic growth as people buy less as a result.

Poppy Brown runs Poppy Sienna Events


Some businesses and sole traders are looking at ditching car use altogether, to avoid the financial hit.

Wedding planner Poppy Brown normally travels across the UK to see venues, meet suppliers, and meet the couples she works with.

"Up until now, I have always driven as I find it's most convenient. However, now I'm looking at other means such as trains, as this actually may work out cheaper now. Otherwise it may even be a zoom call rather than an in-person visit."

Despite the inconvenience, she is trying to look on the bright side.

"I do feel there are positive changes for the environment, and on the train I can actually get some work done."

Newsletter

Related Articles

0:00
0:00
Close
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
×