Price of diesel reaches record high

RAC head of policy Simon Williams said: "The average price of a litre of diesel has now reached the highest level in UK history at 199.18p, 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. By eclipsing the previous highest price of 199.09p seen in June 2022, the diesel price has entered new uncharted territory. 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.

"Petrol prices, too, are continuing to rise. A litre of unleaded stands at 174.13p on average, 41p more than at the start of the war – taking the cost of a full tank to nearly £96.

"These extraordinarily high prices are another reminder of just how exposed the UK is to events occurring far away from its shores. Only a sustained lower oil price – over several weeks, not days – will lead to cheaper prices at the pumps. Suggestions of a renewed deal to end the blockade of the Strait of Hormuz and get oil supplies moving freely again had offered a slight glimmer of hope for drivers.

"The UK might have limited leverage when it comes to ending the US/Iran war and ultimately bringing oil prices down, but the Government could take steps to ease the burden on drivers by lowering fuel duty further or reducing VAT. As things stand, another 5p a litre will be loaded onto pump prices by the Spring if the current fuel duty cut is fully reversed as planned. VAT receipts from fuel are also extremely high, so drivers will be watching this coming week's Labour party conference, and October's Budget, very carefully indeed."

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