UK diesel prices have hit an all-time high of 199.33p a litre, the RAC says, as the war between the US, Israel and Iran keeps disrupting oil supply. Diesel has risen 59p a litre, or just under 40%, since the conflict began seven months ago, pushing the cost of a full tank to £110.
Diesel now costs 199.33p a litre, according to the RAC motoring organisation, overtaking the previous record of 199.09p set in June 2022 after Russia's invasion of Ukraine. Petrol has also kept climbing, reaching 174.23p a litre.
Diesel prices enter uncharted territory
The RAC said diesel prices had entered uncharted territory and were a reminder of how exposed the UK is to events occurring far away. Since the US-Israel conflict with Iran erupted seven months ago, diesel has risen 59p a litre, or just under 40%, taking the cost of filling an average family car to £110, £31 more than before the war. Petrol is now 41p a litre more than at the start of the conflict, though still below its 2022 peak.
Simon Williams, the RAC's head of policy, said record diesel prices hurt not only drivers but everyone who buys goods or services carried by diesel lorries and vans. He added that prices will not fall until there is a sustained lower oil price over several weeks, not days.
Brent crude near $108 as supply tightens
Brent crude, the global benchmark used to price petrol and diesel, rose over the weekend and is now hovering around $108 a barrel, up from about $73 before the US and Israel struck Iran. Analysts say every $10 rise in the oil price adds roughly 7p a litre at the pump.
Russia, also a major diesel producer, has imposed an export ban on the fuel following Ukrainian attacks on its refineries, further tightening global supply. Diesel is harder to refine than petrol, and because it powers the haulage and agriculture industries, demand is difficult to reduce. The UK's four refineries make enough petrol to meet demand but not enough diesel, leaving the country reliant on imports.
Chancellor points to the Budget
Chancellor John Healey said next month's Budget is the moment for the government to address rising fuel costs. He told BBC Radio 5 Live: "I'm acutely concerned and conscious about how hard it is for families." Williams said the government has limited leverage over the war itself, but cutting fuel duty further or lowering VAT could ease the burden at home.
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