Record costs at the pump
The average price of diesel on UK forecourts has climbed to a record 199.18p per litre, surpassing the previous peak of 199.09p recorded in June 2022, The Guardian reported. The surge is primarily attributed to heightened geopolitical instability in the Middle East, which has significantly disrupted global energy supplies and driven up the cost of Brent crude.
Data from the RAC indicates that filling an average family car with diesel now costs nearly £110—an increase of approximately £31 since the conflict in the region escalated on 28 February. Simon Williams, head of policy at the RAC, described the current pricing environment as “uncharted territory” for British motorists.
Supply chain and economic impact
The rising cost of fuel is expected to have a ripple effect across the broader UK economy. Dr. Jonathan Owens, an operations and supply chain expert at the University of Salford, warned that increased logistics costs for road freight—which relies heavily on diesel—will likely be passed on to consumers, impacting sectors from manufacturing and agriculture to supermarket retail.
Compounding the supply concerns, the International Energy Agency noted that output from Russian oil refineries has dropped to a 20-year low following persistent drone strikes, further tightening global supply. In response, Donald Trump has signaled he is considering a potential US diesel export ban to stabilize domestic prices and has urged Ukraine to limit strikes on Russian energy infrastructure.
Regulatory and policy response
While petrol prices have also risen to an average of 174.13p per litre, diesel has seen more aggressive hikes due to high industrial demand. The UK Competition and Markets Authority (CMA) recently examined fuel pricing, noting that while retailer profit margins remained high, there was no concrete evidence of intentional profiteering despite the slow pace at which wholesale price drops were passed to consumers in previous months.
Current government policy includes a 5p-per-litre fuel duty cut, which is scheduled to remain in effect until the end of the year. However, motoring groups are urging the government to consider further support measures, warning that the scheduled reversal of the duty cut in the spring could lead to even higher prices for consumers.