Rising Fuel Prices: What They Mean for Switching Your Fleet to Electric

Updated 8 November 2026. Diesel broke 200p a litre for the first time on record in October, and it is still sitting just under that line. If your business runs cars or vans, here is what the rise actually costs you, what the same miles cost on electricity, and how to lock in the saving before the Workplace Charging Scheme closes on 31 March 2027.

Where fuel prices are now

The government’s weekly figures for the week of 2 November 2026 put the UK average at 198.58p a litre for diesel and 172.78p for unleaded. In the week of 12 October diesel averaged 200.04p, the highest figure since official records began in 2003.

A year ago diesel was around 143p. That is a rise of roughly 56p a litre, close to 40 per cent, in twelve months. Fuel duty has not changed. The increase has come from crude oil and a global squeeze on refined diesel, which the UK imports in large volumes. That is why diesel has climbed faster than petrol and now costs about 26p a litre more.

Prices eased slightly in late October as oil came off its highs, but nobody can tell you where they will be next spring. That uncertainty is the real cost for anyone budgeting a fleet.

What that means per mile

Pence per mile is the number that matters for a business, so here is the same journey on each fuel at today’s prices.

• Diesel van at 35 mpg: about 26p a mile
• Diesel car at 50 mpg: about 18p a mile
• Petrol car at 45 mpg: about 17.5p a mile
• Electric car charged at work (25p per kWh, 3.5 miles per kWh): about 7p a mile
• Electric van charged at the depot (25p per kWh, 2.5 miles per kWh): about 10p a mile
• Electric car on a public rapid charger (79p per kWh average): about 23p a mile

The 25p figure is a fair working number for business electricity. Government data puts the average non domestic price at 24.14p per kWh for early 2026, and small businesses typically pay between 25p and 28p. Business electricity was also around 6 per cent cheaper year on year at that point, while diesel went the other way.

The last line is the important one. An electric vehicle that relies on public rapid chargers costs more per mile than diesel. The saving only arrives when the vehicle charges where it is parked, at your site, on your own supply. Our cost per mile guide explains how these figures are worked out.

What it adds up to for a fleet

Ten vans doing 20,000 miles a year each. On diesel at 26p a mile that is roughly £51,600 a year in fuel. Charged at the depot at 10p a mile it is roughly £20,000. The difference is around £31,500 a year, and that is before servicing, where electric vans have far fewer parts to wear.

Ten staff or pool cars doing 12,000 miles a year each. Diesel at 18p a mile comes to about £21,700. Charged at work at 7p a mile it is about £8,600. That is around £13,000 a year back in the business.

Your own numbers will depend on your tariff, your vehicles and how far they travel. Our commercial EV charger cost guide sets out what the chargers themselves cost, so you can see how quickly a saving like this pays for the installation.

Why this is a better moment than most to switch

The grant is in its final year. The Workplace Charging Scheme pays 75 per cent of eligible costs, up to £500 per socket, for up to 40 sockets. Applications close on 31 March 2027 and there is no announced replacement. Our guide to claiming the WCS explains who qualifies and how the voucher works, and the deadline page shows the timings.

Company car tax still favours electric. Benefit in kind on electric company cars is 4 per cent in 2026/27, against rates of 30 per cent or more for many petrol and diesel cars. Pair that with an employee scheme and the case gets stronger, as our salary sacrifice guide explains.

Depots have their own funding route. If you run vans or HGVs from a yard, the Depot Charging Scheme may cover more of the cost than the workplace grant.

Electricity prices are easier to plan around. You can fix a business electricity contract for one, two or three years. You cannot fix the price at the pump.

Where to start

You do not need to replace a whole fleet at once. Most businesses start with the vehicles that do the most miles and come back to base every night, because they save the most and charge most easily. The first practical step is to check what your site can supply and where chargers should go. That is what a site survey is for.

Sources: UK Government weekly road fuel prices (week of 2 November 2026); DESNZ non domestic energy prices, Q1 2026; Zapmap Price Index, September 2026; GOV.UK Workplace Charging Scheme. Pence per mile figures are illustrative and use the efficiencies stated.