Diesel tops £2 a litre for first time ever
RAC head of policy Simon Williams said: “This is a pump price threshold that no-one wanted to cross – the average price of a litre of diesel has risen to a record 200.01p and is showing no signs of slowing, heaping more misery onto motorists. The cost of filling up an average family car is now £110, almost £32 more than it was at the start of the US/Iran war. This will be very challenging for households and companies that drive a lot of miles, from commuters, haulage and delivery firms, businesses with large fleets all the way through to sole traders. In a cruel twist, it’s diesel vehicles, which were once considered the most cost-effective option for lengthy journeys, that are now burning a hole in people's pockets.
"For an average 45mpg diesel car, the cost works out at an extraordinary 20p per mile, so a driver covering 10,000 miles a year is now spending £2,020 on fuel a year. Households will be tightening the purse strings, while businesses may have no option but to pass these additional costs onto customers. The previous highest price of 199.09p seen in June 2022 is already becoming a distant memory as the conflict in the Middle East continues with no sign of a deal to reopen the critical oil and gas shipping route through the Strait of Hormuz. Additionally, US threats of a diesel export ban could cause prices to rise even further. Once again, it's ordinary people who are left footing the bill for events far away, as the UK remains heavily reliant on fossil fuels and imported diesel.
"Petrol prices, too, are on the increase, with a litre of unleaded costing 174.71p on average, around 42p more than at the start of the war – taking the cost of a full tank to £96. Retailing strategy also plays a role as analysis of RAC Fuel Watch data shows petrol prices are, on average, higher than we would expect – suggesting some retailers could be making an effort to keep diesel prices a little lower by balancing prices across the two fuels. Based on recent fuel retailing trends we'd expect petrol to be averaging 170p a litre rather than the current price.
"With electricity and gas bills also rising, household budgets will already be squeezed. Drivers will be looking to the Government to step in and ease the burden by lowering fuel duty further or reducing VAT in October's budget.”
A 55-litre tank of petrol now cost £96.09 – £23.03 more than it did at the start of the US/Iran conflict. The diesel equivalent is £110.01 – £31.70 more than 28 February.
Press team
