Fuel costs have overtaken energy, staff costs and tax changes to become the single biggest financial pressure facing UK businesses with a fleet, according to a new whitepaper from Right Fuel Card.
The report found that 60% of UK fleet decision-makers name fuel as the cost pressure that has had the biggest impact on their business over the past 12 months – well ahead of energy costs (48%) and vehicle maintenance (29%). Just 1% of businesses say they have felt no cost impact at all.
The report also highlights the risk to profitability. Almost half of businesses (45%) expect rising fuel prices to reduce profits over the next 12 months: 21% anticipate a fall of up to 5%, 14% expect a 6-10% hit, and 10% are bracing for a decrease of more than 10%. Only 14% feel confident they could absorb further fuel price rises, while just 2% believe fuel prices will not affect their business at all.
Businesses are already responding
Just over a quarter (27%) say they are now monitoring fuel expenditure more closely, while 24% have reviewed their vehicle types to improve fuel efficiency. A further 26% have already increased prices for customers in response to rising fuel costs, including 13% who lost customers as a result. The finding underlines the difficult balance businesses face between protecting margins and retaining trade.
The pressure shows no sign of easing
If fuel prices were to rise by another 10p per litre, 29% of businesses say they would raise prices for customers again, while one in five would be forced to delay hiring or business expansion plans altogether.
David James, Revenue Director at Right Fuel Card, said businesses should build fuel escalators into contracts to protect themselves against further volatility: “Ensure you have fuel escalators in all contracts. I know from talking to many haulage owners and transport managers that this became increasingly commonplace after the fuel price rises seen in 2022, following Russia’s invasion of Ukraine, but many businesses still do not have them in place. If there is a viable way to move to EV, then you can also reduce exposure to fuel volatility.”
He added that a dynamic pricing model, underpinned by fuel escalators, is vital for protecting businesses against rising costs, particularly in haulage, where lowering escalators to win price-sensitive work can leave them exposed. “In practice, the businesses that see the best results tend to be those that value consistent, fair pricing from a supplier over constantly chasing the cheapest rate each week,” he said.
The findings suggest fuel volatility is now affecting both operational planning and commercial decisions, with businesses weighing price rises, delayed investment and efficiency measures as they try to protect margins.
The impact of rising fuel costs is not being felt equally across sectors
Manufacturing businesses are the hardest hit, with 81% naming fuel as their biggest cost pressure, followed by Transport and Storage (70%) and Construction (67%). Healthcare and Pharmaceutical businesses report a lower, though still substantial, impact of 57%, while Technology (47%) and Retail (44%) sit closer to or below the national average.
Interestingly, it is Technology businesses that report the highest confidence in their ability to adapt, with 35% saying they are “concerned but believe they can adapt”. They are also among the most proactive in monitoring fuel spend, suggesting a link between visibility into costs and confidence in navigating them.
The link between proactive management and resilience is echoed throughout the report. Businesses that most effectively manage rising costs tend to be those investing in telematics and fleet management tools to optimise routes and identify further savings, rather than reacting only after costs have already spiked.
“Every fleet manager or business owner needs to establish a baseline,” Kieran Taylor, UK Head of Partner Management at Right Fuel Card, noted. “The primary goal is to keep cost per kilometre or mile as low and consistent as possible across short-term and long-term operations, covering everything from fuel spend and routes to vehicle choice, driver behaviour and maintenance.”
To read the full whitepaper, please visit: https://www.rightfuelcard.co.uk/uploads/file-uploads/insights/fuel-price-impact-on-fleets-rfc-whitepaper.pdf
ENDS
Notes to editors:
Right Fuel Card commissioned a national survey via 3Gem. Research was conducted between 7 and 14 July 2026 among 250 UK-based fleet decision-makers, all of whom were responsible for fleet operations, fuel expenditure or operational costs within their organisation.
About Right Fuel Card
Right Fuel Card is an independent distributor of fuel cards with a mission: to simplify the fuel management of businesses across the UK. Right Fuel Card is proud to be part of Edenred, a leading digital platform for services and payments and the everyday companion for people at work, connecting 60 million users and 2 million partner merchants in 45 countries via close to 1 million corporate clients.
For more information on how a fuel card may benefit your business, please visit: https://www.rightfuelcard.co.uk/
