UK diesel price hits £2 a litre for first time, RAC says

The average price of diesel in the United Kingdom has surpassed £2 a litre for the first time on record, driven by ongoing geopolitical conflicts and international supply constraints, according to data released by the motoring organisation the RAC.

Diesel climbed to an average of 200.01p per litre, eclipsing previous peaks set in June 2022 following Russia's invasion of Ukraine. Petrol prices have also climbed steadily, reaching an average of 174.71p per litre.

RAC Warns of Heavy Financial Toll on Households and Businesses

The soaring pump prices have dramatically increased the cost of motoring for families and commercial operators alike. Filling an average family vehicle with diesel now demands roughly £110, representing an increase of nearly £32 since the beginning of the US-Iran war in February. RAC figures indicate that diesel prices have risen significantly since the conflict began.

Simon Williams, head of policy at the RAC, described the milestone as a threshold that motorists hoped would never be crossed.

"This is a pump price threshold that no-one wanted to cross – the average price of a litre of diesel has risen to a record 200.01p and is showing no signs of slowing, heaping more misery onto motorists. The cost of filling up an average family car is now £110, almost £32 more than it was at the start of the US/Iran war."

Simon Williams, RAC head of policy, via The Guardian and LBC

Williams noted that the financial strain extends far beyond private car owners, directly threatening commercial transport and trade.

"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. In a cruel twist, it’s diesel vehicles, which were once considered the most cost-effective option for lengthy journeys, that are now burning a hole in people’s pockets."

Simon Williams, RAC head of policy, via BBC News and The Guardian

For petrol users, filling a typical tank has risen to £96.09, up by £23.03 since February.

Global Supply Disruptions Fuel Domestic Price Surges

The record fuel prices stem from prolonged disruptions in crude oil production and refined product transport originating from the Middle East. The US-Iran war effectively closed the Strait of Hormuz, a critical maritime shipping corridor for oil and liquefied natural gas. Although crude flows through the strait have returned to pre-war levels according to the shipping monitoring firm Kpler, refined diesel supplies remain constrained.

Additional pressures on the global market stem from Ukrainian attacks on Russian refineries, reducing the volume of Russian output flowing onto the global market.

US Export Threat and European Pressure Over Emergency Reserves

Compounding the supply crunch, US President Donald Trump has signaled that he may ask European countries to release diesel reserves as he considers banning US exports of the fuel. The US president is under pressure to bring down prices for American voters ahead of the midterm elections in November. Members of Trump's Republican Party have been ramping up pressure on the president to curb diesel exports.

President Trump's government has already instructed Germany and France to pull from emergency diesel supplies to alleviate the impact of war-related restrictions on global prices, or face a potential US diesel export ban. Government ministers from countries including Germany, France, Italy, and Ireland engaged in discussions regarding the potential utilization of strategic stockpiles.

Because the UK imports nearly 55% of the diesel it uses—with around 31% originating from the United States, and Belgium and the Netherlands jointly supplying more than a third—any American export restrictions threaten to push UK prices even higher.

UK Government Stance on Resilience and Potential Rationing Measures

Despite mounting international tensions, UK officials maintain that domestic fuel networks remain secure.

Transport Minister Keir Mather addressed public concern by emphasizing the diversification of the nation's supply chains.

"I want to reassure people this morning that the United Kingdom has got a diverse range of supply when it comes to diesel. We have resilience built into our system for that reason. We are working very closely with our US counterparts to stress the importance of that relationship, and the importance of sustaining flows of diesel around the world, but also working through international fora in the International Energy Agency and partners in Europe from whom we get a proportion of our diesel imports as well."

Keir Mather, Transport Minister, via LBC and AOL UK

Mather added that existing fuel duty freezes remain in place and that people shouldn't be concerned about shortages because of the inherent resilience built into the system, even as analysts and regional reports debate the possibility of future consumption restrictions or emergency plans.

As international negotiations continue between UK officials, European allies, and the United States ahead of the US midterm elections, transport operators and households wait to see whether American export threats materialize or if emergency reserves are unlocked.