Diesel Hits All Time High, UK Drivers Feel the Pump Pain

UK diesel prices have reached a record 199.18p per litre, according to motoring organisation the RAC, as disruption to oil supplies linked to the conflict in the Middle East continues to push fuel costs higher. Petrol prices are also rising, with the average price reaching 174.13p per litre. The latest increase mark a sharp rise in diesel costs over recent months. According to the RAC, diesel is now around 59p per litre more expensive, an increase of almost 40%, than it was when the US, Israel conflict with Iran began at the end of February. The previous diesel record was 199.09p per litre, recorded in June 2022 following Russia full scale invasion of Ukraine. Record Fuel Costs for UK Drivers The RAC said diesel prices had entered uncharted territory, highlighting how event in international oil markets can affect motorists in the UK. The latest prices mean filling an average family diesel car now costs around £110, approximately £31 more than at the beginning of the conflict. Petrol has also become significantly more expensive, rising by around 41p per litre over the same period, although prices remain below the record level seen in 2022. The RAC figure are based on average diesel prices collected from supermarkets, motorway service stations and independent retailers. Higher Fuel Costs Could Reach Consumers Simon Williams, the RAC head of policy, said the record diesel prices could affect not only motorists but also consumers more widely because diesel is widely used by haulage companies, delivery vans and other businesses. He said higher transport costs could eventually feed into the prices of goods and services. Williams also said pump prices would be unlikely to fall until there was a sustained reduction in global oil prices over several weeks rather than just short term movements. Global Oil Supply Under Pressure Brent crude, a key international benchmark used in pricing oil products such as petrol and diesel, has risen sharply. It is currently trading at around $108 a barrel, compared with approximately $73 before the US and Israel invaded Iran, according to the report. International diesel supplie have also been constrained, with the conflict affecting the movement of crude oil and refined fuel across global markets. Russia, another major oil producer, has also restricted diesel exports following attacks on its refineries by Ukraine, adding further pressure to international supplies. Diesel is particularly sensitive to supply constraints because it is widely used by the haulage and agricultural sectors, making demand harder to reduce quickly. UK Reliance on Imported Diesel The UK remain heavily dependent on imported diesel. While the country's four refineries produce more petrol than domestic demand requires, they do not produce enough diesel to meet the UK needs. That reliance leaves UK fuel prices exposed to changes in international supply and oil markets. There were 15.1 million diesel vehicles on UK road at the end of June, according to the Department for Transport, down from 15.7 million a year earlier. The number of diesel cars also fell during the period, from 10.4 million to 9.8 million. Despite the decline in diesel vehicle numbers, the latest record in pump price mean motorist, businesses and transport operators are facing significantly higher fuel costs, with the wider impact likely to depend on how long elevated global oil prices persist.