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Diesel prices have hit a new record high in the UK, passing the previous record set in 2022 following Russia’s invasion of Ukraine.
The average price of a litre of diesel stood at 199.18p on Monday, according to the latest figures from the RAC.
A litre averaged 142.38p at the start of the US-Iran war on 28 February this year, which was 56.8p less than today. The previous record high was 199.09p in June 2022.
The cost of diesel has risen in recent weeks due to the Russia-Ukraine conflict and renewed hostilities in the Middle East impacting global supplies.
RAC head of policy Simon Williams said: “The average price of a litre of diesel has now reached the highest level in UK history, in what will be a financial blow to households and businesses that use their vehicles regularly.
“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.
“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.
“Only a sustained lower oil price – over several weeks, not days – will lead to cheaper prices at the pumps.”
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The latest figures from the Department for Transport show a total of 15.1 million diesel-fuelled vehicles were licensed to be on UK roads at the end of June this year, including 9.8 million diesel cars.
Russian exports of diesel have dropped after Ukraine targeted many of the country’s oil refineries, with a key facility near Moscow damaged earlier this month as part of a drone operation.
This has led to extra demand for fuel from other diesel-exporting countries, causing wholesale prices to rise. Iran’s effective blockade of the Strait of Hormuz is further limiting the production and supply of fuel.
Dr Jonathan Owens, operations and supply chain expert at the University of Salford, said: “Diesel prices are creeping upwards across UK forecourts, with prices in some locations considerably higher than the national average. Consider the impact on just one heavy goods vehicle (HGV).
“Take a HGV travelling 80,000 miles annually, at eight miles per gallon, it would consume approximately 45,460 litres of diesel. At £2 per litre, that gives an annual fuel bill of approximately £90,900. If we jump to £3 per litre, that rises to approximately £136,400. In real terms, an increase of around £45,500 per HGV. If this is scaled across a fleet of 100 HGVs, we see an additional fuel bill approaching £4.55 million.”
He warned: “And those costs do not simply remain with the haulier. The consequences could reach almost every part of UK economic life: supermarkets, manufacturing, construction, agriculture, e-commerce and countless other sectors that depend upon road freight.”
The cost of unleaded petrol has also been climbing in recent weeks and currently stands at an average of 174.13p per litre, up by 41.3p since the start of the US-Iran war.
The RAC data is based on the average price of diesel at a range of supermarkets, motorway service stations and independent retailers.
Andy Burnham pledged to run a “cost-of-living government” at the start of his term in office, announcing cuts to VAT on household energy bills and a £2 cap on bus fares as immediate measures during his first week in Downing Street.
But the new prime minister was warned ahead of the Labour Party conference over the weekend that political slogans offer “no substitute” for support, with SNP Westminster leader Dave Doogan claiming Mr Burnham’s promise to restore hope to the nation “rings hollow” as household bills mount.
