UK Diesel Hits Record 199.18p a Litre, RAC Says

UK diesel prices have reached an all-time high of 199.18p per litre, according to motoring organisation RAC, as the war in the Middle East continues to push up the cost of fuel.

Petrol prices are still rising too, with a litre currently costing 174.13p.

The Iran war has severely disrupted the production and transportation of wholesale oil across the region over the past seven months, causing the price of fuels made from oil to surge.

RAC said diesel prices had entered "uncharted territory" and served as a reminder of "just how exposed the UK is to events occurring far away".

A record with a narrow margin

The new high of 199.18p narrowly beats the previous record of 199.09p, set in June 2022. The cost of diesel has risen by 59p a litre, or just under 40%, since the conflict between the USA and Iran erupted at the end of February.

The increase means filling an average family car with diesel now costs £110 — £31 more than at the start of the conflict. Petrol prices are now 41p per litre higher than when the fighting began, though they remain well below their 2022 peak.

The RAC data is based on the average price of diesel at a range of supermarkets, motorway service stations and independent retailers.

Simon Williams, RAC's head of policy, said the diesel record "spells pain not only at the pumps for drivers, but for everyone who buys goods or services that rely on diesel lorries and vans".

"Undoubtedly these increased costs will be passed on to consumers," he said.

Williams added that prices at the pumps will not come down until there is a "sustained lower oil price - over several weeks, not days".

Oil at $108, up from $73

The price of Brent crude, a benchmark for global oil used to make petrol, diesel and other fuel products, rose over the weekend and is now hovering at around $108 per barrel. Before the US invaded Iran, it was trading at around $73.

Supplies of diesel internationally have been heavily constrained by the conflict in the Middle East, which has restricted the flow of both crude oil and refined diesel onto global markets.

Russia, which is also a major producer, has implemented an export ban on diesel following attacks on its refineries by Ukraine, further limiting supply.

Two structural factors make diesel particularly vulnerable. Diesel is harder to refine than gasoline, and because it is used by the haulage industry and in agriculture, it is very difficult to reduce demand.

The UK is also heavily reliant on imports. Although the four refineries in the UK make more than enough petrol to meet demand, they do not make enough diesel for the country's needs.

A shrinking diesel fleet

The number of diesel vehicles on UK roads is falling, but not fast enough to soften the price shock. There were 15.1 million diesel vehicles on UK roads at the end of June, according to the Department for Transport, down from 15.7 million a year before.

Diesel cars accounted for 9.8 million of that total, down year on year from 10.4 million.

With breakeven for retailers tied to wholesale costs and global supply still constrained by war and export bans, the RAC's warning is clear: unless oil falls and stays lower for weeks, the pump price — and the consumer inflation it feeds through haulage costs — will remain at record levels.