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Diesel prices have reached a new peak, with the cost now standing at 199.18p per litre, marking an unprecedented high according to the motoring organization RAC. This sharp rise in fuel prices is largely attributed to ongoing conflicts in the Middle East, which continue to exert upward pressure on fuel costs. Petrol prices have also been affected, currently averaging 174.13p per litre and continuing their upward trend.
For the past seven months, the war involving Iran has significantly disrupted the production and transportation of wholesale oil in the region. These disturbances have driven the prices of oil-derived fuels higher. RAC described the current diesel price surge as entering “uncharted territory,” highlighting the UK’s vulnerability to geopolitical events occurring far beyond its borders. Since the start of the conflict between the USA and Iran at the end of February, diesel costs have escalated by nearly 40%—an increase of 59p per litre. This surpasses the previous price record of 199.09p set in June 2022. Consequently, filling an average family car with diesel now costs about £110, which is £31 more than before the conflict began. Though petrol prices have increased by 41p per litre since then, they remain below their peak levels from 2022.
The RAC’s pricing data is derived from a blend of fuel costs across supermarkets, motorway service areas, and independent retailers. Simon Williams, the RAC’s head of policy, warned that the record diesel price “spells pain not only at the pumps for drivers, but for everyone who buys goods or services that rely on diesel lorries and vans.” He stressed that consumers can expect these increased costs to be passed down the supply chain. Williams noted that fuel prices are unlikely to fall unless there is a prolonged period of sustained lower oil prices, lasting several weeks rather than days.
Internationally, the situation remains challenging as Brent crude oil prices have climbed to approximately $108 per barrel, up from around $73 prior to the US invasion of Iran. The ongoing conflict has severely constrained the global supply of both crude oil and refined diesel. Additionally, Russia—another significant diesel producer—has imposed an export ban on diesel following attacks on its refineries attributed to Ukraine, further tightening global supplies. Diesel is more difficult to refine than petrol and, due to its heavy use in haulage and agriculture, demand is hard to reduce. The UK depends heavily on diesel imports since its four domestic refineries can produce sufficient petrol but fall short of meeting the nation’s diesel requirements. According to the Department for Transport, there were 15.1 million diesel vehicles on UK roads at the end of June, a slight decrease from 15.7 million the previous year. The number of diesel cars alone dropped from 10.4 million to 9.8 million over the same period
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