The average price of diesel in the UK has surpassed £2 per litre for the first time, reaching 200.01p per litre, according to the RAC motoring group. Petrol prices have also increased, averaging 174.71p per litre. The RAC noted that price increases are ongoing, impacting motorists.
The rise in prices is attributed to several factors, including disruptions in oil production and transportation due to the ongoing conflict in Iran, which has affected wholesale oil and refined product supplies globally. Additionally, Ukrainian attacks on Russian refiners and China's restrictions on refined fuel exports have further constrained diesel availability.
On Friday, 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 one another, following threats from US President Donald Trump to ban diesel shipments overseas, which could have raised global fuel prices.
RAC policy head Simon Williams described the crossing of the £2 threshold as a significant concern for households and businesses reliant on diesel, including commuters and delivery firms. He noted that the cost of filling an average family car with diesel has risen to £110, nearly £32 more than at the beginning of the US-Iran conflict.
Farmers like Mark Means from Norfolk have expressed alarm over rising diesel costs, which are impacting their operational expenses. Means reported spending £50,000 on new diesel tanks to secure supply for harvesting and planting, indicating that the price increase is severely affecting profit margins.
Driving instructors, such as Steven Tompkins in Leicester, are also feeling the impact, as they are forced to raise prices due to increased fuel costs, which affects students on tight budgets.
UK government officials have attempted to reassure diesel users, stating 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 coming from the US, accounting for about 17% of total UK supply.
The cost of filling a typical petrol car has also risen, now standing at £96.09, an increase of £23.03 since February.