AIRPORT BOOKINGS COLLAPSE AND DIESEL COSTS SOAR: Cabbies discuss how Iran conflict is adding pressure on UK taxi drivers
- Perry Richardson
- 39 minutes ago
- 3 min read
The ongoing conflict involving Iran is adding further financial strain to parts of the UK taxi and private hire industry, with drivers reporting higher fuel bills, reduced profitability and softer passenger demand in some areas.
Readers responding to a TaxiPoint question about the impact of the conflict described a mixed picture across the trade. While electric vehicle operators said they had seen little or no direct effect when it comes to running costs, diesel drivers reported weekly fuel cost increases ranging from a few pounds to more than £50.
Several drivers linked the pressure directly to rising global oil prices following instability around the Strait of Hormuz, one of the world’s key shipping routes for crude oil exports. Higher wholesale fuel prices have filtered through to UK forecourts, increasing operating costs for drivers already dealing with elevated insurance, finance and licensing expenses.
One driver, Simon Stewart, claimed fuel costs were “up 25%”, while others estimated increases of £30 to £50 per week in diesel spending. Tony Hollins, who operates a 700-mile-per-week school run contract, said the higher fuel bill was costing him “£50 a week more for the same money”.
Taxi and private hire drivers report rising diesel bills, longer working hours and weaker demand as Middle East tensions feed into operating costs
The impact appeared uneven across the sector. Some drivers said demand had remained stable, while others reported weaker trade. Seb Neate said airport bookings had fallen sharply year-on-year, claiming May 2026 bookings were down around 60% compared with the previous year and that June reservations were significantly behind normal levels.
Other drivers suggested the increased costs were forcing operators to work longer shifts or become more selective over jobs accepted. Geoff Brayfield said he was now ensuring journeys returned “£1 a mile at the least”, while Murray Leith described “working far longer hours to make up for extra costs”.
Electric vehicle drivers responding to the discussion painted a notably different picture. Several operators said charging costs remained low despite wider energy market concerns. Martin Brown said his diesel Mercedes would now cost between £450 and £500 a month to run, compared with roughly £4 per day to charge his Volkswagen ID.4 taxi. Others reported EV charging costs of roughly £1 per day.
The comments also highlighted the widening operational divide emerging between electric and diesel fleets across parts of the UK taxi trade. Industry suppliers have increasingly reported strong demand for electric vehicles despite higher upfront purchase prices. One respondent from Car and Cab Care claimed that 89% of new taxi vehicle orders were now electric.
However, some drivers warned that many fellow cabbies remain financially exposed due to vehicle finance agreements, mortgages and rising household costs. John Bailey said younger drivers with vehicle payments and rent commitments could face growing pressure as margins tighten in regions where demands has been affected.
The taxi sector has historically been highly sensitive to fuel price volatility due to the mileage-intensive nature of the work. Unlike many other sectors, drivers are often unable to immediately pass rising costs directly onto customers, particularly in areas where fares are regulated by local authorities or competition from ride-hailing platforms remains intense.
The industry is also seen as a good gauge for the economy as a whole. When the global economy is functioning well people spend more on leisure and businesses which directly feeds into more taxi movements. That said drivers main concerns around the conflict is the impact around rising costs rather than lower demand at this point.
