UK diesel prices have exceeded £2 a litre for the first time, the RAC motoring group reports. The average price reached 200.01p per litre, while petrol averaged 174.71p per litre. The RAC said price rises show no signs of slowing and are "heaping more misery onto motorists".
The Iran war over the past seven months has severely disrupted production and transportation of wholesale oil and refined products from the region, causing prices to surge globally. Ukrainian attacks on Russian refiners have further constrained diesel supplies on the world market. China has also restricted exports of refined fuels, adding to supply pressures.
RAC policy head Simon Williams called £2 a "price threshold no one wanted to cross". He warned the milestone "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". Filling an average family car with diesel now costs £110, up almost £32 since the start of the US-Iran conflict in February. A typical petrol car costs £96.09 to fill, up £23.03 over the same period.
Mark Means, a Norfolk farmer with over 50 years in the industry, said he was "frightened to death" by rising diesel costs. He spent £50,000 on new diesel tanks to secure supply for harvesting and planting crops, but rising prices are cutting into his margins. "It feels like it's an assault," he said.
Steven Tompkins, a driving instructor in Leicester, said rising fuel prices force him to increase lesson fees, which hurts cost-conscious customers. "When you've got kids who are working part time, they're on a tight budget and we're telling them that the prices are going to have to go up because of the fuel, it's hurting," he said.
On Friday, G7 nations agreed to release 100 million barrels of oil to curb further price increases. The G7 also agreed member countries would not impose export restrictions on each other, after US President Donald Trump threatened to ban American diesel shipments overseas. The move would have pushed up global fuel prices while easing pressure on US consumers ahead of November's midterm elections.
A UK government spokesperson said the country has "a diverse and resilient supply" and continues engaging with international partners and the UK fuel industry. The government stressed there is no cause for concern about potential diesel shortages. Over half of UK diesel is imported, with less than a third of imports from the US, amounting to around 17% of total UK supply.