Drivers and businesses in Britain are facing the prospect of diesel prices exceeding £2 per litre for the first time, as surging fuel costs approach record highs. The UK average diesel price climbed to 191.69p per litre on Monday, according to the RAC, surpassing the previous peak of 191.54p recorded on April 15.
The current price surge is attributed to the ongoing conflict in the Middle East, which has severely impacted fuel supplies through damaged refineries and disrupted shipping lanes, particularly in the Strait of Hormuz. The increased costs mean that filling a 55-litre family diesel car now exceeds £105.
Simon Williams, head of policy at the RAC, stated that both diesel and petrol prices have reached levels not seen since August 2022, shortly after the start of the war in Ukraine. He noted that diesel prices have risen by 8p per litre since the beginning of September. With oil prices trading above $100 a barrel, Williams anticipates no immediate end to high pump prices, which he described as a significant burden for drivers reliant on their vehicles.
"In fact, the average price of diesel may be on the way to overtaking the record high of 199.05p set on 25 June 2022," Williams said. He added that petrol prices, however, remain significantly below their all-time record of 191.53p, which was set on July 3, 2022.
Last week, Rod Dennis from the RAC warned that diesel prices were expected to hit a new high within days due to the US/Iran war. He advised motorists to compare prices at different stations rather than accepting the first price they encounter.
Since the end of February, the price of diesel has increased by nearly 50p per litre, marking a 34% rise in seven months. Unleaded petrol has also seen a substantial increase, rising from 132.83p to its current level, making it 27% more expensive than in February.