Average UK diesel price tops £2 a litre for first time

The average price of diesel has reached £2 a litre for the first time, according to new figures from the RAC. At 200.01p per litre, filling a typical 55-litre family SUV now costs around £110, more than £30 extra compared with the start of the US-Iran conflict in February.

The RAC warns that prices could rise further, with continued uncertainty over oil supplies and shipping through the Strait of Hormuz.

Why are diesel prices rising?

Diesel prices have climbed sharply since the US-Iran conflict began on 28 February. According to RAC Fuel Watch, the average price stood at 142.38p per litre at the time, before rising to 191.54p by 15 April.

Prices subsequently fell to 165.8p in mid-June, but have since risen again to a record 200.01p per litre, surpassing the previous high of 199.09p recorded in June 2022.

For drivers, the difference is substantial. Filling the 55-litre tank of a diesel Volkswagen Tiguan now costs around £110, compared with approximately £78 before the conflict began.

At current prices, the RAC estimates that a diesel car averaging 45mpg would cost around 20p per mile in fuel. That means a driver covering 10,000 miles a year could spend approximately £2,020 on diesel alone.

The RAC expects prices to remain volatile amid uncertainty over the Strait of Hormuz and the possibility of restrictions on US diesel exports.

Petrol prices are rising too

Petrol drivers are also facing higher costs. The average price of unleaded has risen from 132.83p per litre on 28 February to 174.71p, despite a temporary fall during the summer.

Petrol reached 159.37p on 1 June before dropping to 151.12p on 1 July, but prices have since climbed to their highest level since the conflict began.

At the current average, filling a 55-litre petrol Volkswagen Tiguan costs around £96, compared with £73 in February.

RAC calls for action on fuel prices

RAC head of policy Simon Williams described diesel reaching £2 a litre as "a pump price threshold that no-one wanted to cross".

The motoring organisation believes retailers could do more to ease the pressure on diesel drivers, suggesting that petrol prices are currently higher than expected.

Williams said: "Analysis of RAC Fuel Watch data shows petrol prices are, on average, higher than we would expect – suggesting some retailers could be making an effort to keep diesel prices a little lower by balancing prices across the two fuels."

He added that recent fuel retailing trends suggest petrol should be averaging around 170p per litre, rather than its current price.

The RAC is also calling on the government to consider cutting fuel duty or VAT in the October Budget to help motorists facing rising household costs.