Diesel prices reach UK record high as fuel approaches £2 per litre

The price of diesel has hit its highest recorded level in UK history. On average, filling up at the black pump will now set drivers back on average £1.99 per litre, with the typical motorway service station charging as much as £2.16.

According to the RAC, the cost to fill up the average diesel car’s 55-litre fuel tank now stands at over £109 – £30 more than at the start of the US-Iran war that’s caused the cost of petrol and diesel to spiral out of control. This figure eclipses the previous high of 199.09 pence per litre experienced during the early stages of the Russian invasion of Ukraine in the summer of 2022 and, in the words of the RAC’s head of policy, Simon Williams, it marks an entry into “new uncharted territory”.

Similarly, the price of petrol has also seen a huge rise since the kick-off of hostilities; the average UK price of petrol now sits at £1.74 per litre – almost 40p more than in February. This means filling up the average petrol car will now set you back almost £96, which is roughly £23 more than seven months ago. At motorway service stations, petrol is also almost on the brink of breaking the £2-per-litre mark.

“These extraordinarily high prices are another reminder of just how exposed the UK is to events occurring far away from its shores,” said Williams. The cost for a barrel of Brent Crude – the type of oil that’s refined into motor fuel – now sits at around $100 per barrel, up from just over $70 before 28 February. “Only a sustained lower oil price – over several weeks, not days – will lead to cheaper prices at the pumps,” Williams explained.

In March, the Government under ex-Prime Minister Keir Starmer commissioned the Competition and Markets Authority, the UK’s chief market regulator, to monitor the fuel sector for any evidence of price gouging. While the CMA is yet to find any evidence of retailers changing their pricing tactics to profiteer from the high oil prices, the regulator has pointed out that a lack of competition in the sector has led to “passive” pricing strategies. These keep prices high for consumers, because retailers are sluggish to react to fluctuations in the price of oil, instead waiting for others to do so first.

“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,” Williams said. 

As of the time of writing, the Government is set to reverse the temporary five pence cut to fuel duty in the Spring – something that was pushed back from September in light of the high fuel prices caused by the war in Iran. As for whether this reversal will still take place next year or whether any other relief will be granted, new Labour Prime Minister Andy Burnham told BBC local radio, “People will have to wait for the [October] Budget on this one.”

Relief cannot come soon enough, though, given that the US Energy Information Administration (EIA) suggests that due to gradually dwindling oil reserves, the price of fuel – particularly diesel – could continue to soar well into 2027.

Auto Express has approached HM Treasury for comment.

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