The average price of standard diesel in the UK has reached an all-time high of 199.18p per litre, according to the RAC. This record comes as forecourts across the country continue to increase prices, with the previous high of 199.09p per litre recorded in June 2022, shortly after Russia's invasion of Ukraine.
Fuel prices have been climbing steadily since July, with diesel rising by 20 per cent since mid-July. The pressure on global oil markets, exacerbated by the Iran war, has caused a second spike in UK prices. The average price of standard unleaded petrol now stands at 174.1p per litre, which has also risen sharply in recent weeks but has not reached the same record levels as diesel. Following the invasion of Ukraine, unleaded peaked in July 2022 at 191.5p per litre.
Motorway service stations charge 199.9p per litre
Standard unleaded is also rising and could break through the £2 barrier, with more than 50 forecourts at motorway service stations now charging 199.9p per litre. Drivers can find the cheapest petrol prices in their area using interactive tools provided by news outlets.
The main reason for the steady increase in diesel costs is the ongoing conflict between Russia and Ukraine, combined with renewed hostilities in the Middle East. Both scenarios are putting increased pressure on global supplies and routes. Russian exports of diesel have dropped sharply after many of the country's oil refineries were targeted by Ukraine, with a key facility near Moscow damaged earlier this month as part of a huge drone operation. This has led to extra demand for fuel from other diesel-exporting countries, causing wholesale prices to rise.
RAC warns of financial blow to households and businesses
RAC head of policy Simon Williams said: "The average price of a litre of diesel has now reached the highest level in UK history, in what will be a financial blow to households and businesses that use their vehicles regularly. The cost of filling up an average family car is now almost £110, £31 more than it was at the start of the US-Iran conflict."
He added: "This spells pain not only at the pumps for drivers, but for everyone who buys goods or services that rely on diesel lorries and vans; undoubtedly these increased costs will be passed on to consumers. Only a sustained lower oil price – over several weeks, not days – will lead to cheaper prices at the pumps."
Impact on consumers and goods prices
The record diesel price is expected to have a knock-on effect on the cost of goods and services, as businesses that rely on diesel-powered transport may pass on increased costs to consumers. The RAC's comments highlight the broader economic impact of the fuel price surge, affecting not just drivers but the wider supply chain.
With the price of diesel now at an all-time high, households and businesses are facing increased financial pressure. The situation remains dependent on global oil market dynamics, with the RAC emphasising that only a sustained drop in oil prices over several weeks will lead to cheaper fuel at the pumps.
