Diesel is now selling at its highest price ever: forecourts are charing 199.18p per litre on average in the UK, according to the RAC, surpassing the previous record set in June 2022 after Russia’s invasion of Uktraine. Simon Williams, head of policy at the RAC, said the cost of filling up an average family car is now almost £110, which marks a £31 increase compared with at the start of the US-Iran conflict. The diesel price has entered new uncharted territory.
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. Petrol prices are also rising, with a litre of unleaded now at 174.13p on average, 41p more than at the start of the war. Te cost of a full tank is now nearly £96.
Williams said: These extraordinarily high prices are another reminder of just how exposed the UK is to events occurring far away from its shores. Only a sustained lower oil price – over several weeks, not days – will lead to cheaper prices at the pumps. Suggestions of a renewed deal to end the blockade of the Strait of Hormuz and get oil supplies moving freely again had offered a slight glimmer of hope for drivers.
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. As things stand, another 5p a litre will be loaded onto pump prices by the spring if the current fuel duty cut is fully reversed as planned. VAT receipts from fuel are also extremely high, so drivers will be watching this coming week’s Labour party conference, and October’s budget, very carefully indeed.”
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