The average price of diesel in the UK has climbed above £2 per litre for the first time, marking a significant financial challenge for motorists across the country. According to the motoring group RAC, diesel currently stands at an average of 200.01p per litre, while petrol costs are also maintaining an upward trend, averaging 174.71p per litre. Watch: Diesel prices in the UK have hit an all time high – here’s why.
These ongoing price hikes are “showing no signs of slowing, heaping more misery onto motorists,” the RAC noted. Simon Williams, the group’s policy head, described the £2 mark as a “price threshold no one wanted to cross.” He warned that the surge impacts everyone from commuters and haulage firms to delivery services and sole traders who rely heavily on road transport. From commuters, haulage and delivery firms, businesses with large fleets all the way through to sole traders,” he added, this will be very challenging for households and companies that drive a lot of miles.
The financial strain is becoming increasingly apparent for families, as filling an average diesel-powered vehicle now costs roughly £110—an increase of nearly £32 since the start of the US-Iran war. Similarly, the cost to fill a standard petrol car has climbed by £23.03 since February, reaching £96.09.
Global market volatility remains the primary driver behind these costs. The conflict in Iran has disrupted the production and transport of wholesale oil for the past seven months, while ongoing attacks on Russian refineries have tightened diesel supplies internationally. Furthermore, China has moved to restrict exports of refined fuel, creating additional pressure on the global market. But helped ease pressure on US consumers ahead of November’s midterm elections, the move would have pushed up global prices of the fuel.
In response to the mounting crisis, G7 nations met on Friday and reached a consensus to release 100 million barrels of oil to help curb further spikes. The group also established an agreement to prevent member countries from imposing export restrictions on one another, a move intended to counter potential trade barriers such as those threatened by US President Donald Trump regarding American diesel shipments.
Despite these measures, the impact on the ground remains severe. Norfolk-based farmer Mark Means, who has over five decades of agricultural experience, described the rising costs as an “assault” on his operations. He has invested £50,000 in additional storage tanks to secure supplies for planting and harvesting, yet acknowledges that the price surge is significantly eroding his profit margins. He has spent £50,000 on new diesel tanks to try to ensure he has enough supply to harvest and plants crops, but the rising price is cutting into his margins.
Small business owners are also feeling the pressure. Steven Tompkins, a driving instructor in Leicester, explained that he has been forced to raise his service rates to cover fuel expenses. “When you’ve got kids who are working part time, they’re on a tight budget and we’re telling them that the prices are going to have to go up because of the fuel, it’s hurting,” Tompkins said.
UK government officials attempted to offer reassurance on Friday, maintaining that the country possesses a “diverse and resilient supply” of fuel. A spokesperson emphasized that the government continues to engage with international partners and the domestic fuel industry, asserting that there is no cause for concern regarding potential shortages.
While approximately half of the diesel consumed in the UK is imported, the government notes that imports from the US account for less than a third of that total, representing roughly 17% of the nation’s overall supply chain.
