UK diesel price hits record high of £2 a litre

For the first time in the UK, the average price of diesel has surpassed £2 per litre, according to the RAC motoring organization. The rise in diesel prices is attributed to the ongoing fallout from the Iran war, which continues to impact global fuel costs. Diesel now averages 200.01p per litre, while petrol prices have also started to climb, averaging 174.71p per litre.

The Iran conflict has disrupted oil production and transportation in the region, leading to a surge in prices. The RAC reports that filling an average family car with diesel now costs £110, nearly £32 more than at the beginning of the US/Iran war. This financial burden will affect various groups, including commuters, haulage firms, businesses with large fleets, and sole traders.

The cost of filling a typical petrol car has risen to £96.09, an increase of £23.03 since February. The fuel cost surge is primarily due to a sharp increase in Brent crude prices, which serve as a benchmark for global oil used in petrol and diesel production. The conflict closed the Strait of Hormuz, a crucial oil transport route, limiting global supplies.

Although crude flows have returned to prewar levels, refined products like diesel remain scarce due to damage caused by conflicts in Ukraine and Iran. The UK, relying on imports for most of its diesel needs, imports around 31% from the US, with Belgium and the Netherlands contributing over a third.