UK Diesel Prices Hit Record High as Average Cost Nears £2 a Litre

LONDON: The average price of diesel at UK forecourts has reached a record high of 199.18 pence per litre, surpassing the previous peak recorded in June 2022, according to figures from the RAC.

The latest price is just below £2 a litre and is 0.09 pence higher than the previous record of 199.09 pence set in 2022 following Russia’s invasion of Ukraine. The increase has added to pressure on motorists and businesses amid continued disruption to global energy supplies.

The RAC said the cost of filling an average family car with diesel has risen to almost £110, around £31 more than at the beginning of the US-Iran conflict. The organisation said the increase represents a rise of almost 40% since February 28.

Petrol prices have also continued to rise. The RAC reported that unleaded petrol was averaging 174.13 pence per litre on September 28, with the cost of filling an average car approaching £96.

Fuel prices have been affected by the continuing conflict in the Middle East and disruptions to oil and refined-fuel supplies. The market has also faced pressure from disruptions to Russian refining capacity, contributing to tighter diesel supplies.

RAC head of policy Simon Williams said the record diesel price was likely to affect not only motorists but also businesses that depend on diesel-powered lorries and vans, with higher transport costs potentially feeding into the prices of goods and services.

The latest figures add to economic pressure on UK households and businesses as policymakers prepare for the upcoming Budget, with elevated energy and transport costs posing wider challenges for inflation and household spending.