Fuel Purchase Plunge Drives Biggest UK Retail Sales Drop in a Year

Retail sales in Great Britain recorded their largest monthly decline in a year in April, driven by the steepest reduction in petrol and fuel purchases since the COVID-19 pandemic in 2020.

The Office for National Statistics (ONS) reported that the overall volume of retail sales fell 1.3% in April compared with March, the biggest contraction since May 2023 and exceeding the 0.6% decline forecast by economists.

Fuel purchases dropped more than 10% month-on-month, the steepest decline since November 2020, when sales fell 14.8% as pandemic restrictions imposed a second national lockdown.

“After strong growth last month, motor fuel sales fell in April, with evidence suggesting motorists were conserving fuel after stocking up in March,” said Grant Fitzner, chief economist at the ONS. “These subdued fuel purchases contributed to a sizeable monthly fall for total retail sales in April.”

The ONS revised downward its initial estimate of retail sales growth for March from 0.7% to 0.6%.

That increase was driven by a 6.1% rise in fuel sales volumes and a 12% jump in the value of fuel sales — the largest monthly increase since November 2021 — as the Iran war triggered “panic at the pumps” and a rush to stock up amid the biggest surge in fuel prices in over three years.

Excluding the impact of the sharp decline in fuel purchases, total retail sales fell 0.4% month-on-month, the ONS said.

Fitzner noted that sales at beauty product, computer, and technology shops remained “strong and sustained” in April.

Retail store sales fell 0.4% compared with March, with clothing stores hit hardest as sales dropped 2.4% — the lowest level since June 2023 — amid unpredictable weather and subdued demand from consumers concerned about rising prices.

Jacqueline Windsor, head of retail at PwC UK, said: “April 2026 will be remembered as the first month that the impact of the Middle East conflict first hit British consumers. We already saw consumer sentiment fall at its fastest rate for four years, and we now have evidence that this translated into shoppers buying less in stores.”

“The question will be whether the downward momentum continues, or whether May’s better weather and the – perhaps temporarily – lower inflation can encourage consumers back into stores as spring turns to summer,” Windsor added.

For the first quarter overall, total retail sales increased 1.1% year-on-year and 0.5% compared with the final three months of 2023.