20th May 2026
The latest ONS producer price figures for April 2026 reveal a manufacturing sector caught in the crossfire of global energy turmoil. While consumer inflation has been easing, the story behind the factory gates is very different. The cost of making things in Britain is rising sharply again — and the culprit is unmistakable: oil.
Producer input prices — the cost of materials and fuels bought by UK manufacturers — jumped 7.7% in the year to April, up from 5.3% in March. Factory gate prices, the prices manufacturers charge for finished goods, rose 4.0%, also accelerating from the previous month. Both measures show a clear upward shift, driven overwhelmingly by the global energy shock triggered by the Middle East conflict.
Crude Oil: The Dominant Force Behind Rising Costs
No category contributed more to April’s surge than crude oil.
Input prices for crude rose a staggering 75.4% over the year — a direct reflection of the disruption to global supply routes and the volatility in Brent crude markets. Monthly crude prices rose another 12%, following an extraordinary 52% jump in March.
This is not a gentle ripple through the supply chain; it is a shockwave. Manufacturers reliant on petroleum feedstocks, plastics, chemicals, metals processing, and transport fuels are all feeling the squeeze.
Refined Fuels Push Factory Gate Prices Higher
On the output side, the biggest driver was refined petroleum products — diesel, aviation turbine fuel, gas oil and related products. Prices in this category rose 52.6% year‑on‑year, more than double the rate recorded in March.
This reflects both the global shortage of refined fuels and the UK’s heavy dependence on imported diesel and jet fuel. Even with the government’s new licence allowing imports of third‑country refined Russian‑origin fuels, the market remains tight and prices remain elevated.
Imported Costs Rising Fast
The Import Price Index rose 8.0% annually, up from 4.1% in March.
Non‑EU crude and refined fuels were the main contributors, showing how exposed UK manufacturing is to global energy markets. A slightly stronger sterling helped soften the blow, but only marginally.
A Lone Bright Spot: Domestic Food Inputs Fall
The only downward contribution came from domestic food inputs, which fell 0.4% annually. Lower dairy prices helped, but this is a small offset in an otherwise energy‑dominated picture.
A Manufacturing Sector Under Pressure
The April figures underline a simple truth: producer inflation is back under pressure, even as consumer inflation cools. Manufacturers are being hit by:
soaring crude oil costs
higher refined fuel prices
rising import costs
continued geopolitical instability
These pressures will eventually filter through to consumers unless energy markets stabilise. For now, the gap between consumer‑facing inflation and producer‑facing inflation is widening — a warning sign for the months ahead.
The Oil Shock Is Far From Over
April’s producer price data show a UK manufacturing sector grappling with the most intense energy‑driven cost pressures since 2022. With crude oil up more than 75% and refined fuels up 52%, the inflationary pipeline is primed again.
If global conditions worsen or even fail to improve the UK may see renewed upward pressure on consumer prices later in 2026. For now, the message from the factory gates is clear: the oil shock is still working its way through the system.
Read the full ONS report 20 May 2026 HERE