UK Diesel Breaks £2 a Litre for First Time, RAC Says

The average price of diesel in the UK has risen above £2 a litre for the first time, hitting 200.01p, according to the RAC motoring body, as fallout from the Iran war continues to push up fuel costs.

Petrol prices are also still climbing, reaching an average of 174.71p a litre, the RAC said. The organisation warned that price rises were "showing no signs of slowing, heaping more misery onto motorists".

The milestone puts fresh pressure on households and businesses already absorbing seven months of disruption to wholesale oil and refined products from the Iran conflict. Ukrainian attacks on Russian refiners have further constrained diesel supplies on the world market.

The cost at the pump

Filling an average family car with diesel now costs £110, almost £32 more than at the start of the US/Iran war, according to the RAC's Simon Williams.

"This 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," Williams said.

The cost of filling a typical petrol car has risen to £96.09, the RAC said, up £23.03 since February.

The impact lands hardest on diesel-dependent sectors. Haulage firms, delivery companies and businesses running large fleets face a structural squeeze that shows no sign of easing: the RAC expects prices to rise further.

Why the UK is exposed

Diesel is harder to refine than gasoline, and the UK's refining profile leaves it structurally dependent on imports. UK refineries produce more petrol than the country consumes domestically, but they meet less than half of demand for diesel.

As a result, the UK relies on imports for just under half of the diesel it uses. Around 31% of those imports typically come from the US, while Belgium and the Netherlands jointly supply more than a third.

That import mix explains why the UK pump price is now hostage to decisions being weighed in Washington.

Trump's export ban threat

The US has put increasing pressure on European countries to release more diesel stocks to help lower prices worldwide, with President Donald Trump threatening to ban US exports of the fuel.

A ban would redirect more US diesel to the domestic market, easing prices for American motorists ahead of the midterm elections in November. It would also likely push prices up elsewhere, including in the UK and the EU — a trade-off with direct consequences for British importers.

Trump said he was considering a ban and backed Treasury Secretary Scott Bessent, who has urged European countries to release diesel supplies "immediately". Bessent argued that US farmers, truckers and businesses "should not be left carrying the burden" as prices soar.

Westminster's response

UK government ministers said they were working with both the US and the EU.

"We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry," a government spokesperson said.

The government has stressed there is no cause for concern about potential diesel shortages, though it concedes prices are expected to rise further.

With nearly a third of UK diesel imports sourced from the US, a Trump export ban would hit British supply precisely when Iranian and Russian disruption has already tightened the global market. For hauliers and fleet operators, the question is not whether prices rise further, but how fast.