Our latest national research reveals that 60% of UK fleet businesses now cite fuel as their single biggest cost pressure, outstripping every other operational expense. Yet, when it comes to government policy and support, the conversation has focused mainly on large hauliers and household motorists, leaving out a vital segment of the economy.
Sole traders and small trade businesses, which form the backbone of the UK’s fleet sector, face the same soaring fuel costs but with far less capacity to absorb the shock. Many operate on tight margins, without the leverage or resources of bigger fleets to negotiate better rates or pass on costs. Without targeted intervention, these essential local businesses will be hit hardest, threatening jobs, livelihoods, and the communities they serve.
That’s why we’re urging the government to broaden its approach. We need policies designed not just for the largest players but for the thousands of sole traders and small businesses who keep the UK moving and now need meaningful support to weather this crisis.
Our research
We recently commissioned independent research to better understand how UK fleet businesses are coping with ongoing fuel price volatility. Our survey of 250 fleet decision-makers, published in the ‘Fuel Price Impact on Fleets’ whitepaper, provides a detailed snapshot of what’s happening on the ground right now.
The results are sobering: for many operators, rising fuel costs are not just an inconvenience but a threat to business viability and survival.
Our research confirms that the businesses least able to absorb sudden cost increases, such as sole traders and small fleet operators, are also those least likely to have their voices heard in the policy debate. While larger organisations may have buffers or negotiating power, smaller businesses face the sharpest impact, often without meaningful support or representation.
In light of these findings, we believe it’s crucial for government to hear directly from those most affected.
This piece sets out our position and recommendations to policymakers, focusing on the urgent, practical support that UK fleet businesses need to weather the storm.
The scale and urgency of the problem
Our research paints a stark picture of just how deeply fuel price volatility is affecting UK fleet businesses.
Across the companies we surveyed:
60% of respondents now say fuel is their single biggest cost pressure, making it a more pressing concern than any other overhead, and more than twice as many as those who cited vehicle maintenance.
Over a quarter (26%) have already been forced to raise prices for customers to cover rising fuel costs, and 13% have lost customers as a direct consequence. This means the impact isn’t just on business balance sheets, but is also being felt by end customers and communities.
Nearly half (45%) expect fuel costs to directly erode their profits over the coming year. For 10%, the anticipated loss exceeds 10% of their bottom line, potentially threatening business viability and growth.
Worryingly, just 14% of fleet businesses feel confident they could withstand further increases in fuel prices, highlighting just how stretched resources already are.
If fuel prices climb by just 10p a litre, 29% say they would have no choice but to raise prices again, while one in five would be forced to delay hiring or halt planned business expansion. This shows the ripple effect fuel volatility has on jobs and economic growth.
Fuel prices are the dominant cost pressure facing UK fleet businesses of all sizes and in all regions. Our research message is clear: these businesses need urgent action and tailored support to weather the storm and protect local economies across the country.
Why soaring fuel costs hit sole traders and small businesses hardest
Our survey reached fleet decision-makers from businesses of all sizes, but some of the most striking findings concern the challenges faced by sole traders and small fleets.
Take construction, an industry that includes many of our sole-trader and small-fleet customers. In this sector, 67% reported fuel as their top cost pressure, significantly above the national average of 60%. This highlights just how acutely rising fuel prices are being felt by those operating on the smaller end of the spectrum, especially in essential trades that keep the country running.
When we compared mid-sized businesses (100–249 employees) to large enterprises (3,000+ employees), the results were clear: smaller businesses are consistently more exposed to fuel price shocks. For example, 31% of mid-sized businesses have already raised prices for customers (compared to 23% of large enterprises), 24% have delayed hiring (versus 19%), and 18% say they may have to shrink their fleet, something no large enterprise in our survey was even considering. These numbers show that smaller operators are forced to make tougher decisions, often with fewer resources and less flexibility than their larger counterparts.
But perhaps the clearest perspective comes from our Revenue Director, David James:
“For many of our customers, fuel can be as much as 25-30% of operating expenses. This isn’t just true for large transport companies; it’s the same for small businesses too. The real difference comes down to industry: outside of transport and logistics, fuel may be a smaller part of costs, so businesses can absorb price shocks more easily. But for those who rely on their vehicles every day, soaring prices are a threat to their livelihood, no matter their size.”
This distinction matters for policymakers: a sole-trader electrician or a five-van landscaping business absorbs fuel price shocks at nearly the same proportional intensity as a large haulage company, but without the scale to spread risk, a finance team to renegotiate contracts, or a prominent voice in Westminster. As a result, these businesses often carry the burden alone, even though they are the backbone of the UK’s local economies.
Fuel escalators: little-known and little-discussed outside of haulage
One of the most striking insights from our research isn’t about government policy, but about the contracts businesses rely on every day, an issue of real public interest.
As our Revenue Director, David James, puts it:
“Make sure you have fuel escalators in all contracts. After the volatility of 2022, many haulage owners and transport managers have made this standard practice, but surprisingly, a significant number still haven’t.”
A fuel escalator, a contract clause that automatically adjusts prices in line with fuel costs, has become a safety net for many large haulage operators. Their size and negotiating power mean they can insist on this protection, passing cost fluctuations through to customers and reducing the risk of sudden losses.
In contrast, smaller trade businesses and sole traders often lack the leverage to secure these clauses, especially when competing against rivals willing to hold prices steady just to win the job. This leaves the businesses most vulnerable to fuel price shocks with the least contractual protection. For many, one unexpected spike in costs can wipe out already thin margins, threatening their ability to stay afloat and serve local communities.
This gap deserves far more attention. Ensuring fairer access to fuel escalator clauses or alternative protections could make a real difference for the small businesses that keep the UK moving but who too often bear the biggest risks alone.
Our five-point plan for urgent government action on fuel price volatility
Drawing from the evidence in our latest research and voices of small fleet operators and sole traders across the UK, we’re urging the government to take five clear, practical steps to help these vital businesses weather the storm and protect local economies:
1. Freeze fuel duty for the remainder of this Parliament
Fuel duty is scheduled to rise by 3p in January 2027 and another 2p in March.
By delaying these increases in May, the government already acknowledged that now is not the time to add pressure.
We’re calling for this recognition to become a firm commitment through to the next election, not a temporary pause that must be lobbied for at every Budget.
2. Design an essential user fuel rebate that truly supports trade vans and sole traders
Industry bodies have rightly highlighted fuel rebate schemes in Spain, France, and Italy as models.
But these schemes focus on large, licensed transport operators and heavy vehicles; France’s, for instance, applies only to vehicles above 7.5 tonnes. Simply copying this approach would leave many UK small businesses, sole traders, and trade van operators exactly where they are now: with no relief.
Any UK fuel rebate must base eligibility on vehicle class, light commercial vehicles actively used for trade, not operator licensing status. Only then will support reach the local businesses who are most exposed and least able to weather further fuel price shocks.
3. Make the public sector lead by example on fair fuel cost pass-through
Fuel escalator clauses, which adjust contract prices in line with fuel costs, are standard in large haulage contracts, but remain rare for small trade businesses, who usually lack the leverage to insist on them.
The public sector is a major commissioner of UK construction and trade work, and by making fair fuel cost-adjustment clauses a standard in contracts with SME suppliers, government can set the tone for best practice across the industry.
If the public sector leads, private clients are more likely to follow suit, helping small businesses remain viable and resilient.
4. Protect and simplify EV transition funding for the smallest fleets
As our Revenue Director, David James, puts it:
“The best way for small fleets to escape fuel price volatility is to transition to electric vehicles”.
Yet current electric vehicle grant schemes are often complex and tailored to larger fleets with dedicated finance teams, leaving sole traders and micro-fleets struggling to access support. We’re calling for existing van and truck grant funding to be protected from further cuts and for the process to be streamlined and simplified for businesses operating five or fewer vehicles. This would make it much easier for small businesses to take practical steps towards electrification.
5. Make small-business impact a standard part of every fuel duty decision
Treasury assessments of fuel duty changes tend to focus mainly on household motorists and large-scale business impact, often overlooking the realities smaller operators face. Yet our research shows that fuel cost pressure is proportionally similar for a five-van trade business and a major haulier. We’re asking the government to require a formal assessment of the impact on sole traders and micro-fleets before every future fuel duty decision, so the needs of the most vulnerable businesses are always considered, and this argument doesn’t have to be made from scratch every time.
Where we go from here: supporting the businesses that keep the UK moving
These issues aren’t just statistics; they represent real people and businesses: electricians, builders, landscapers, and SME operators who keep the UK moving every day.
These are the faces behind the numbers, and they make up the vast majority of commercial vehicles on our roads and the heart of our own customer base. As we approach the Budget on 28th October 2026 and look beyond, we remain committed to championing their needs, ensuring their voices are heard by policymakers, and sharing updates as the situation evolves. Our goal is to support these businesses not only by calling for urgent policy changes, but also by providing practical guidance and resources to help them weather this period of volatility.
If you’d like to explore all the findings and insights behind this article, our 'Fuel Price Impact on Fleets' whitepaper is available to read in full. We encourage anyone interested, whether you’re a business owner, policymaker, or industry partner, to take a look and join the conversation about supporting the UK’s vital fleet sector.
About Right Fuel Card
Right Fuel Card is a leading UK business fuel card provider that helps businesses of all sizes, from sole traders to large fleets, take control of fuel costs and simplify fuel expense management. With access to over 98% of fuel stations across the UK, competitive pricing, and HMRC-approved digital invoicing, we make fuel management effortless whilst helping you save money.
Our comprehensive service includes detailed online reporting, dedicated customer support, and optional RightProtect legal support for complete peace of mind on the road. Whether you're managing a single vehicle or an entire fleet, Right Fuel Card provides the tools and support you need to operate efficiently and comply with regulations.
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This article was written and published on 21st September 2026 and reflects Right Fuel Card's position as of September 2026. Survey findings come from Right Fuel Card’s ‘Fuel Price Impact on Fleets’ whitepaper, based on independent research among 250 UK fleet decision-makers between 7-14 July 2026. Figures describing businesses by employee count refer to the survey's own size bands (mid-market: 100-249 employees; large enterprise: 3,000+ employees); the survey did not include a dedicated sole-trader or micro-business breakdown, and claims specific to that group draw on direct customer insight from Right Fuel Card alongside the survey's industry-level findings.
All information contained within is correct at the time of writing, but please note that fuel prices remain highly volatile and figures may have changed since publication. We try our best to continue to update our guides, but not all guides are regularly reviewed — for the latest news and insight, visit: rightfuelcard.co.uk/news-insights
