Brief

M & M Direct warns of price hikes as UK diesel tops £2 per litre

Owner Mike Tomkins says diesel at over £2 a litre may force the discount retailer to raise prices.

By Felo News Desk · Published Sat, 03 Oct 2026 20:04:24 GMT

Owner Mike Tomkins of online discount retailer M & M Direct told the BBC that the recent surge in UK diesel prices – now above £2 a litre – could compel the company to raise prices for consumers.

What happened

Diesel prices have reached a record level of over £2 per litre, according to the RAC, making the cost of filling an average family diesel car about £110 – roughly £32 more than at the start of the US‑Iran war. Tomkins said his business is already paying an extra £8,000 a day in fuel surcharges to transport goods.

What the reports add

The Daily Mail article notes that many UK garages are charging £2 per litre for the first time and that up to a third of some orders at M & M Direct are now covered by fuel surcharges.

What was said

"The situation is a lot more volatile than it has been and what really worries me is the fuel shortages which will affect the whole economy and business – it's a very dangerous time," Tomkins told the BBC.

He added, "We are all still reeling from the National Insurance rises a while back and the persistent minimum wage rises. So I would like to see on the fuel side some potential reduction in VAT and I would like to see a government that are pro business, that really talk to smart people in business."

How it came about

Tomkins, who has been in business for 45 years, said the surge in diesel costs follows earlier pressures such as recent National Insurance hikes and ongoing minimum‑wage increases. He called for a more pro‑business stance in the upcoming Budget, linking fuel costs to broader tax and regulatory burdens.

Key facts

• UK diesel prices have risen to over £2 per litre, a record level. (dailymail.co.uk)
• M & M Direct is paying an extra £8,000 a day in fuel surcharges. (dailymail.co.uk)
• Filling an average family diesel car now costs about £110, £32 more than at the start of the US‑Iran war. (dailymail.co.uk)
• Mike Tomkins has been in business for 45 years. (dailymail.co.uk)
• Up to a third of some orders are now covered by fuel surcharges. (dailymail.co.uk)

Sources

• [1] dailymail.co.uk — originally reported as “Retail chief says prices will go up if diesel continues to soar”