How Rising Fuel Prices & Subsequent Changing Vehicle Demand Should Direct Stock Decisions

According to the RAC, fuel prices are at their highest point since the start of the Iran war. Prices have not yet reached the heights of the Russian war on Ukraine, but they are still rising. This, amongst other factors, is driving petrol registration figures down, with EVs moving in the opposite direction. We’ve taken a look at the latest figures and how demand could influence stock strategy moving forward.

Where Petrol Prices Currently Sit 

Petrol is currently 163p per litre, with diesel coming in at 184.99p. This is a steady rise from early 2026, and the signs are that this inflation isn’t slowing down. Fuel already takes up the largest portion of most car owners’ budgets, and further rises could leave some with a tough decision to make.

How Macro Factors Affect The Average Household

At a time when owning a car is already a high financial cost, around £3,500, rising fuel prices will only shift the financial burden further onto households. With the ongoing cost-of-living crisis, customers are approaching a point where fuel type is a game-changer in the car decision process.

The Latest Stats Show A Petrol Decline

The latest data from SMMT (The Society of Motor Manufacturers and Traders) shows a 3.5% drop in new petrol registrations in August compared to the month prior. At the same time, HEV, BEV and PHEVs all increased, at a rate of 26.3%, 27.7%, and 39.8%, respectively. Petrol cars still saw the highest number of registrations, 36,048, but BEVs followed closely behind at 28,063. These metrics paint a clear picture: the UK market is approaching a point where EVs and petrol swap, with EVs becoming the dominant fuel type. BEVs alone have already amassed a 29.8% market share, less than 9% behind petrol, and this gap is only going to shrink. Compared with 2025, petrol has lost around 7% of market share. In the same period, BEVs have gained 3% market share, with HEV and PHEVs improving too.

(source: SMMT, 2026)

Shifting Trends Mean Shifting Stock

August 2026 was the strongest August in the last 16 years, with 94,236 registrations. This was a significant jump on 2025 and 2024, pointing to an improving market. Buyer confidence is improving, even at a time when household bills are high, and EVs are a driver behind this.

For lenders looking to maximise the value of their forecourt stock, the time to shift to EVs is upon us. In the last month alone, the Jaecoo 7 and Jaecoo 5 were 2 of the 5 most registered models, presenting a clear opportunity to meet changing demand.

Petrol cars shouldn’t be completely abandoned, but a collaborative approach to fuel types could be the key to getting deals over the line.

Closing Thoughts

Fuel prices are on the rise. When combined with the growing demand for EVs and the rise in general appeal for new cars, dealers should consider the benefits of all forms of EVs when that stock question rolls around.

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