UK diesel prices reach record high at 199.18p per litre

Diesel prices in the UK have reached a record high, with the average price rising to 199.18p per litre on Monday, according to figures compiled by the RAC and reported by the Press Association.

The new average is above the previous record of 199.09p per litre, reached in June 2022 following Russia’s invasion of Ukraine. Prices have risen by 56.8p per litre since the start of the US-Iran war on February 28, when diesel averaged 142.38p.

The RAC data covers prices at supermarkets, motorway service stations and independent retailers.

The organisation said diesel costs had risen in recent weeks because of disruption to global fuel supplies linked to the ongoing conflict between Russia and Ukraine and renewed hostilities in the Middle East. Russian diesel exports have fallen sharply after oil refineries were targeted by Ukraine, while increased demand for fuel from other exporting countries has pushed up wholesale prices.

The ongoing war between the US and Iran has also disrupted trade in refined oil and other petroleum products. The evidence said Iran’s effective blockade of the Strait of Hormuz was limiting fuel production and supply.

RAC head of policy Simon Williams said the record price would be a financial blow to households and businesses that use vehicles regularly. He said filling an average family car now cost almost £110, about £31 more than at the start of the US-Iran conflict.

“Only a sustained lower oil price – over several weeks, not days – will lead to cheaper prices at the pumps,” Mr Williams said.

Unleaded petrol has also become more expensive, reaching an average of 174.13p per litre, up 41.3p since February 28.

The pressure is particularly significant for businesses that rely on road transport. AA president Edmund King said diesel was central to the country’s business infrastructure because most delivery trucks and goods transported by road use diesel.

He said hauliers would often pass higher fuel costs on to customers, increasing the price of goods and adding to inflation.

There were 15.1 million diesel-fuelled vehicles licensed for use on UK roads at the end of June, down from 15.7 million a year earlier, according to the latest figures from the Department for Transport. The number of diesel cars fell from 10.4 million to 9.8 million over the same period.

There were 20.4 million petrol vehicles licensed to be on the roads in June, including 18.8 million cars.

Motoring organisations have called on the Government to extend the current 5p cut in fuel duty beyond the end of the year, when it is scheduled to be reversed. Mr Williams also suggested that fuel duty could be reduced further or VAT cut to ease pressure on drivers.

Chancellor John Healey told ITV News that he was concerned about rising diesel and petrol prices. He said the Government had introduced a Fuel Finder to help people locate cheaper forecourts and had frozen any increase in diesel duty until the end of the year.

Mr Healey said decisions on fuel duty beyond the end of the year would be announced in the Budget on October 28. Treasury minister Emma Reynolds told BBC Radio 4’s The World At One that the record diesel price was “very worrying” but said the Government had measures it could use to ease the burden.

Mr Healey also said the Government was discussing possible measures with the United States and that ending the conflict in the Middle East and reopening the Strait of Hormuz would help reduce the pressure on fuel prices.