Motorists in the UK are facing increased challenges at fuel stations as the average price of diesel has surged to an unprecedented £2 per litre.
The cost of diesel at UK pumps has escalated by 40.5% since late February, coinciding with the onset of the US-Israel conflict concerning Iran, which has disrupted the supply of crude oil and refined products from the Gulf region, resulting in widespread price hikes throughout the economy.
The RAC motoring organization reported on Friday that the average diesel price had reached 200.01p per litre. This means that filling up a standard family vehicle now costs approximately £110, which is nearly £32 more than prior to the conflict with Iran.
Simon Williams, RAC’s head of policy, remarked, “This is a price point at the pump that nobody wished to reach.”
Although the RAC’s statistics reflect the average fuel prices, many service stations have been charging over £2 per litre for diesel for some time. Petrol prices are also on the rise, with the average cost for unleaded petrol reaching 174.1p per litre, marking a 31.5% increase since February 28. This rise translates to an average tank filling cost of £96, which is just over £23 higher than before the conflict.
On Friday, Transport Minister Keir Mather attempted to reassure the public, stating that there is no diesel shortage in the UK, despite Donald Trump’s warning of potential US supply cuts.
The Trump administration has urged Germany and France to release their diesel reserves to alleviate soaring global energy prices or face a ban on US fuel exports.
In response, the UK has initiated discussions with European partners regarding the release of emergency diesel supplies. Dan Jørgensen, the EU’s energy commissioner, confirmed that Europe is engaging with all members of the International Energy Agency (IEA) on the issue of diesel reserves, not just the US.
The UK imports approximately 30% of its diesel from the US, with the majority sourced from mainland Europe, and currently has reserve supplies sufficient for 42 days.
As a result of rising fuel costs, both consumers and small businesses are feeling the strain.
Williams further commented, “This situation will be particularly tough for households and businesses that rely heavily on driving, including commuters, logistics companies, and small enterprises.”
He added, “In an unfortunate twist, diesel vehicles, which were once seen as the most economical choice for long-distance travel, are now putting a significant financial burden on owners.”
The recent peak in diesel prices has come on the heels of record fuel costs across Europe, prompting calls for political action to protect consumers from escalating expenses.
Inflation in fuel prices has outstripped the recent surge in global oil prices, primarily due to a significant reduction in refinery output caused by geopolitical tensions in the Middle East and Russia.
Prior to the Ukraine conflict, Russia accounted for 10% to 15% of the world’s diesel supply, while another 10% passed through the Strait of Hormuz from Gulf countries before Iranian responses to US-Israeli actions disrupted these routes.
Trump has urged Ukrainian President Volodymyr Zelenskyy to halt drone and missile strikes on Russian refineries to help alleviate the global fuel crisis.
The conflict in the Middle East has also led to increased household energy expenses. This week, the quarterly price cap rose by 4%, setting the average household energy bill in Great Britain at £1,723 per year. Projections indicate a further increase of 16%, which would add approximately £276 to the average annual dual-fuel bill, raising it to £1,999, according to Cornwall Insight, a prominent forecasting agency.
