UK diesel prices have surged to an all-time high of 199.18p per litre, according to the RAC, surpassing the previous record of 199.09p set in June 2022. As the ongoing war between the US and Iran disrupts global supply chains, fuel costs have entered what the motoring organisation describes as “uncharted territory,” highlighting the vulnerability of the UK market to international crises. According to RAC, Diesel prices had entered “uncharted territory” and served as a reminder of “just how exposed the UK is to events occurring far away”.
Since the conflict erupted in late February, diesel prices have climbed by 59p per litre—a rise of nearly 40%. For the average family car owner, this increase translates to an additional £31 per tank, bringing the total cost of a full fill-up to £110. Petrol prices are also rising, currently sitting at 174.13p per litre, marking an increase of 41p since the start of the conflict, though this remains below its 2022 peak.
Simon Williams, the RAC’s head of policy, warned that this record-breaking surge “spells pain not only at the pumps for drivers, but for everyone who buys goods or services that rely on diesel lorries and vans.” He noted that these higher operational costs will inevitably be passed on to consumers, and emphasized that relief at the pumps is unlikely until global oil prices experience a “sustained lower oil price” lasting several weeks. The Iran war has severely disrupted the production and transportation of wholesale oil across the region, causing the price of fuels made from oil to surge, over the past seven months.
Global market instability is further evidenced by the price of Brent crude, which has risen to approximately $108 per barrel, up from roughly $73 prior to the US intervention in Iran. The situation has been exacerbated by constrained international supplies and a Russian ban on diesel exports following attacks on its refineries by Ukraine. It was trading at around $73, before the US invaded Iran.
The UK faces a particular challenge due to its heavy reliance on imports. While domestic refineries produce sufficient petrol to meet local demand, they struggle to generate enough diesel to satisfy the country’s needs. Because diesel is essential for the haulage and agricultural sectors, consumer demand remains inelastic, making it difficult to mitigate the impact of these soaring costs.
The latest RAC figures reflect average pricing across independent retailers, motorway service stations, and supermarkets nationwide. As the situation remains fluid, industry experts continue to monitor the intersection of geopolitical events and the resulting pressure on the cost of living.
