UK diesel prices have surged to an all-time high average of 199.18p a litre, dealing a severe financial blow to households and businesses reliant on their vehicles. Petrol
UK diesel prices have surged to an all-time high average of 199.18p a litre, dealing a severe financial blow to households and businesses reliant on their vehicles.
Petrol prices also continue to rise, with a litre of unleaded now standing at 174.13p.
The RAC has described the situation as “uncharted territory”, warning that prices do not show any signs of slowing down as global oil markets remain volatile amid escalating Middle East tensions.
Data from the motoring organisation shows diesel pump prices have now eclipsed the previous highest price of 199.09p seen in June 2022. Diesel prices have soared by 56.8p a litre or 39.9% since the start of the US–Iran conflict.
RAC head of policy Simon Williams warned of severe economic ripples: “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.”
The financial burden on everyday drivers has risen dramatically across both petrol and diesel. The RAC estimates that 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. Over the same time period, unleaded has surged by 41.3p a litre (31.1%), driving the cost of a full tank to nearly £96.
The extraordinarily high prices are another reminder of just how exposed the UK is to events occurring far away from its shores.
Compounding the crisis, analysis reveals the UK holds just 42 days of emergency diesel stockpiles, leaving the nation highly vulnerable to global supply shocks. Over 70% of the UK’s diesel supply is imported, making Britain one of Europe’s most exposed markets. And the situation could deteriorate further as the US considers banning diesel exports to protect its domestic market.
The RAC has warned that only a sustained lower oil price – over several weeks, not days – will lead to cheaper prices at the pumps.
While recent hints of a deal to end the Strait of Hormuz blockade offered a brief glimmer of hope, any meaningful drop in pump prices remains entirely dependent on global supply routes reopening permanently.
The Government is now under mounting pressure to take action to protect drivers, businesses and the domestic economy.
Williams continued: “The UK might have limited leverage when it comes to ending the US–Iran war and ultimately bringing oil prices down, but the Government could take steps to ease the burden on drivers by lowering fuel duty further or reducing VAT.”
Instead of offering relief, current fiscal policy could push prices even higher. Motorists face an additional 5p-a-litre duty hike by the spring if the temporary fuel duty cut is reversed as scheduled – and with fuel VAT receipts soaring, the RAC said motorists will be watching this week’s Labour party conference and the Autumn Budget on 28 October with an anxious eye.
Campaign group FairFuelUK urged the Government not to wait for the Budget, instead demanding an emergency 10p cut in fuel duty as it spotlighted the impact on households, hauliers, farmers and small businesses.
The group pointed to real-time national forecourt data showing UK diesel prices have already surged past an average of £2 per litre. The UK Fuel Price Index places diesel at 200.3p per litre, with thousands of forecourts displaying prices between £2.05 and £2.18. Government weekly figures confirm diesel is at 197.9p, rising at the fastest rate since March 2022.
Wholesale diesel prices have surged by 11p in just seven days, driven by tighter US exports, record European refining margins and global supply losses of more than 1.6 million barrels per day due to refinery outages and conflict-related disruptions. Analysts warn that without intervention, UK diesel could climb to £2.20-£2.25 within weeks, even days.
Without an immediate duty cut, FairFuelUK cautions that the UK will see a fresh wave of inflation driven by transport, food distribution and agricultural costs.
Diesel inflation is feeding directly into food prices, with haulage costs rising 8-12% in the last month. Small businesses are also being squeezed, with delivery fleets reporting weekly fuel bills up £70-£100.
A 10p duty cut would save £6.20 for the average family car fill-up, along with £120-£150 per week for a typical tradesperson’s van and £3,000-£5,000 per year for a 44-tonne truck.
Howard Cox, founder of the group, stated: “Waiting until 28 October is not leadership; it’s negligence. Act now, cut duty now and stop hammering Britain’s motorists, hauliers and farmers.”
Alongside an emergency 10p fuel duty cut, FairFuelUK wants transparent wholesale-to-retail pricing oversight to prevent profiteering, and a diesel resilience plan to reduce UK exposure to volatile imports. It’s also called for immediate monitoring of US export policy, which directly affects UK pump prices.
