US Diesel Prices Near Record High Amid Global Tensions, Potential Export Ban Fears

The price of diesel is approaching a new all-time high, with average pump prices hovering just below the previous record. The RAC reported that current prices are at 198.32p per liter, narrowly missing the record of 199.09p set four years ago. This surge is occurring amidst heightened global tensions, particularly the ongoing conflict involving Iran, which is impacting global energy markets.

Adding to the concern is the possibility that the United States may consider a ban on its diesel exports. Such a move could further exacerbate supply issues and drive prices even higher for consumers. These developments come as motorists are already facing increased costs for fuel, with petrol prices also reaching their highest point in over four years.

According to RAC head of policy Simon Williams, the cost of filling a 55-liter tank for a family car now stands at approximately £109. He noted that the record price for diesel is expected to be surpassed over the weekend as retailers pass on rising wholesale costs. Petrol prices have seen a significant increase of nearly 12p in September and over 40p since the escalation of the Iran conflict.

Diesel prices have risen by 14.5p this month alone and by 55p since late February. The cost of a barrel of oil has reached $106, remaining elevated around the $100 mark for the past two weeks. Williams suggested that a substantial drop in oil prices is unlikely without a de-escalation of the conflict between the United States and Iran, indicating a continued period of high fuel costs for drivers.