{"id":7149,"date":"2026-08-06T11:09:43","date_gmt":"2026-08-06T10:09:43","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=7149"},"modified":"2026-08-06T10:09:46","modified_gmt":"2026-08-06T10:09:46","slug":"uk-petrol-prices-set-to-reach-their-highest-level-of-2026-what-this-could-mean-for-smes","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/uk-petrol-prices-set-to-reach-their-highest-level-of-2026-what-this-could-mean-for-smes\/","title":{"rendered":"UK petrol prices set to reach their highest level of 2026 \u2013 What this could mean for SMEs?"},"content":{"rendered":"

Geopolitical tensions are set to push UK petrol prices to the highest level of the year, with the average cost reaching 160p per litre<\/a>, according to RAC monitoring.<\/p>\n

<\/p>\n

This comes after the Bank of England warned interest rates might rise if volatile oil and gas prices lead to added inflation.<\/p>\n

Higher fuel prices and potentially higher interest rates could hit SMEs particularly hard, driving up costs and decreasing their borrowing costs.<\/p>\n

While this instability might drain finances, there are options available that can save your business money in the long run.<\/p>\n

Through Electric Vehicle schemes and expert financial guidance, tighter margins and higher interest rates can be offset, so businesses can enjoy more financial breathing room.<\/p>\n

What are the hidden costs of higher fuel prices for SMEs?<\/strong><\/h3>\n

If your firm runs vans, operates machinery or needs to heat facilities, rising fuel prices are likely to substantially raise operating costs.<\/p>\n

Suppliers may raise their prices with the cost of transportation at a premium, which is felt a lot more by smaller businesses.<\/p>\n

Aside from the obvious costs, the added risk of inflation caused by higher fuel prices can also have financial complications.<\/p>\n

Despite the Bank of England holding the interest rate at 3.75 per cent, it warned this will be raised if fuel prices cause any added inflation<\/a>.<\/p>\n

The knock-on effect could mean that borrowing costs for SMEs increase, which could increase debt repayments and financing costs.<\/p>\n

Consumer demand could also weaken as households face rising fuel prices and the added incentive to save, capitalising on higher interest rates.<\/p>\n

While these factors might cause an added financial strain for SMEs, there are ways the higher prices can be managed.<\/p>\n

Exploring the use of Electric Vehicles<\/strong><\/h3>\n

To protect your business from volatile fuel prices, Electric Vehicle (EV) schemes can help decouple operations from volatile fuel markets.<\/p>\n

While investing in EVs might carry a higher upfront cost than petrol or diesel vehicles, lower fuel and maintenance costs might make them cheaper overall.<\/p>\n

With fuel prices having remained consistently high in the UK over the past few years, electric charging can work out much cheaper per mile.<\/p>\n

EVs are often much cheaper to service as there are fewer moving parts, with repair and maintenance costs up to 23 per cent lower<\/a>.<\/p>\n

Favourable Benefit in Kind rates mean electric company cars are often significantly more tax-efficient than petrol, diesel and hybrid alternatives.<\/p>\n

Switching your business operations to EVs can help protect against future fuel price spikes and can potentially save money in the long-term.<\/p>\n

How can an accountant help you absorb costs?<\/strong><\/h3>\n

Accountants can\u2019t change the economy, but they can help a business manage its costs and keep cash flow healthy.<\/p>\n

With the added risk of raised interest rates, our accountants can help your business effectively manage its borrowing costs.<\/p>\n

Whether this means identifying which liabilities should be repaid first or suggesting ways your business could become less reliant on loans, financial experts can help.<\/p>\n

Through cash flow forecasting, SMEs can identify gaps in advance and plan around them, so there is still money to cover payroll, tax and other liabilities.<\/p>\n

Hiring an accountant to model and stress test further rises in interest rates and fuel prices allows you to understand and avoid the breaking points of your business.<\/p>\n

If you are worried about what the rising fuel prices could mean for your business, or you are considering switching to Electric Vehicles, please reach out to our team today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Geopolitical tensions are set to push UK petrol prices to the highest level of the year, with the average cost reaching 160p per litre, according to RAC monitoring.<\/p>\n","protected":false},"author":2,"featured_media":7152,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,25],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7149"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=7149"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7149\/revisions"}],"predecessor-version":[{"id":7150,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7149\/revisions\/7150"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/7152"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=7149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=7149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=7149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}