The average price of diesel in the UK has surpassed £2 per litre for the first time, reaching 200.01p, according to the RAC motoring group. Petrol prices have also increased, averaging 174.71p per litre. The RAC noted that price increases are continuing, impacting motorists significantly.
The rise in diesel prices is attributed to several factors, including disruptions in oil production and transportation due to the ongoing conflict in Iran, as well as Ukrainian attacks on Russian refiners, which have constrained diesel supplies globally. Additionally, China has imposed restrictions on the export of refined fuels.
In response to rising prices, G7 nations convened and agreed to release 100 million barrels of oil to mitigate further price increases. They also decided against imposing export restrictions on each other, following a threat from US President Donald Trump to ban American diesel shipments overseas.
Simon Williams, the RAC policy head, remarked that crossing the £2 threshold is a significant concern for households and businesses that rely heavily on diesel, including commuters and delivery firms.
Mark Means, a farmer in Norfolk, expressed concerns about the impact of rising diesel prices on his operations, stating he has invested £50,000 in new diesel tanks to secure supply for harvesting and planting, but the escalating costs are affecting his profit margins.
Driving instructors like Steven Tompkins in Leicester are also feeling the effects, as they are forced to raise prices due to increased fuel costs, which is challenging for students on tight budgets.
UK government officials have attempted to reassure diesel users about the supply situation, emphasizing that the country has a diverse and resilient fuel supply and that there are no immediate concerns regarding diesel shortages. Over half of the diesel consumed in the UK is imported, with less than a third of those imports coming from the US, representing about 17% of the total UK supply.
The cost of filling an average family car with diesel has now reached £110, which is nearly £32 more than at the beginning of the US-Iran war. The cost of filling a typical petrol car has also risen to £96.09, up £23.03 since February.