The cost of diesel in the UK has hit a record high, with prices now exceeding £2 per litre for the first time, according to confirmation from the RAC motoring group. This increase represents a major setback for both motorists and businesses.
According to the RAC, average diesel prices have reached 200.01p per litre, while petrol has risen to an average of 174.71p per litre. The organisation cautioned that there is “no sign” of prices dropping soon, warning that persistent increases would “heap more misery onto motorists.”
Fuel prices soar due to global disruptions
Several factors on the world stage have led to the latest surge in fuel prices. Over the past seven months, military tensions involving Iran have disrupted oil production and transport, impacting both wholesale oil and refined product prices on a global scale. Meanwhile, Ukrainian attacks on Russian refineries have resulted in a constrained diesel supply internationally. Measures put in place by China to restrict fuel exports have made global stocks even tighter.
To ease the crisis, G7 nations staged an emergency meeting on Friday and committed to releasing 100 million barrels of oil from their shared reserves to provide some relief worldwide. In addition, the G7 countries agreed not to place export bans on each other’s oil supplies. These steps were taken after US President Donald Trump threatened to halt exports of American diesel, an action which could have led to even higher global prices, though US drivers may have seen local benefits ahead of the national elections.
UK families and businesses feel the impact of higher diesel costs
As diesel surpassed £2 per litre, industry leaders sounded the alarm on the repercussions for the UK economy. Simon Williams, head of policy at the RAC, labelled this milestone “a price threshold no one wanted to cross,” and explained that the surging costs present a severe difficulty for commuters, delivery drivers, fleet-based companies, and independent traders. Williams highlighted the challenges for “households and companies that drive a lot of miles, from commuters, haulage and delivery firms, businesses with large fleets all the way through to sole traders.”
The effects are being felt widely, with truck operators, delivery drivers, and farms particularly hard hit. Mark Means, who has been farming in Norfolk for more than 50 years, recently invested £50,000 in diesel storage tanks in an effort to lock in fuel for harvesting and sowing crops. Despite these precautions, he reported his profits are suffering under the weight of rising prices, saying he is “frightened to death” by the financial pressure and describing the situation as “an assault.”
The increased fuel charges are also affecting the general public, since more expensive delivery and food production ultimately lead to higher costs for everyone. In Leicester, Steven Tompkins, a driving instructor, said he has had to increase the price of his lessons, a step that particularly impacts young people who are already managing tight budgets.
Government reassurances and dependence on imports
UK government ministers have attempted to reassure the public amid concerns about the escalating prices, saying the country’s supply chain for diesel is robust and diverse. A spokesperson pointed to continued collaboration with the domestic fuel sector as well as international partners, stressing that there is “no cause for concern” around diesel availability right now.
The RAC highlights that the UK brings in more than half of its diesel from abroad. Of these imports, the US provides less than one-third, which means it accounts for about 17% of the UK’s overall diesel supply.
The consequences for everyday expenses are substantial. The RAC now calculates that filling up an average family diesel car costs £110, which represents an increase of almost £32 since military conflict between the US and Iran began. Filling up a standard petrol-powered vehicle costs £96.09, up by £23.03 since February.
With global instability continuing and diesel supply conditions unpredictable, both UK consumers and businesses are grappling with mounting costs, leading many to call for more support and a stable outlook in the near future.