HomeBusinessUK diesel price hits all-time high, the RAC says

UK diesel price hits all-time high, the RAC says


The RAC data is based on the average price of diesel at a range of supermarkets, motorway service stations and independent retailers.

The Chancellor said on Monday that the the “place” and “time” for the government to deal with questions around rising petrol and diesel prices and fuel duty is next month’s Budget.

John Healey told BBC Radio 5 Live: “I’m acutely concerned and conscious about how hard it is for families. I see that at the pumps myself.

“We can’t remove the cost of living pressures, we can’t remove the prices that people are having to pay, but where we can we will act and we will give people just a bit of breathing space, and the same goes for the cost to business.”

Simon Williams, the RAC’s head of policy, said record diesel prices “spell 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,” he said. Williams said prices at the pumps will not come down until there is a “sustained lower oil price – over several weeks, not days”.

The price of Brent crude, a benchmark for global oil used to make petrol, diesel and other fuel products, rose over the weekend and is now hovering at around $108 per barrel. Before the US and Israel invaded Iran, it was trading at around $73.

Supplies of diesel internationally have been heavily constrained by the conflict in the Middle East, which has restricted the flow of both crude oil and refined diesel onto global markets.

Russia, which is also a major producer, has also implemented an export ban on diesel, following attacks on its refineries by Ukraine, further limiting supply.

Diesel is harder to refine than gasoline and, because it is used by the haulage industry and in agriculture, it is very difficult to reduce demand.

The UK is heavily reliant on imports. Although the four refineries in the UK make more than enough petrol to meet demand, they do not make enough diesel for the country’s needs.



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