Diesel drivers across the UK are confronted with a fuel price surge that is considerably worse than initially expected. Following successive increases in fuel prices, Simon Williams, head of policy at the RAC, has issued a stark warning about the rising cost of diesel.
Williams explained, “With so many households dependent on their vehicles, the impact of the Middle East conflict on fuel prices is profoundly felt. Since late February, unleaded petrol has increased by over 14p per litre, reaching 147.19p. This hike adds approximately £8 to fill a typical family car, pushing the cost to £81, a price last seen in early June 2024.”
However, diesel drivers face an even grimmer reality. “Diesel prices have risen by 29p per litre, now standing at 171.17p — the highest price in more than three years since mid-January 2023. Filling a diesel tank now costs around £94, which is £16 more than before the conflict began,” Williams added.
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The price escalation is underpinned by oil barrels trading consistently above $100 over recent days, a trend expected to persist. This scenario suggests that drivers should brace for further increases at the pumps as the Easter holiday approaches, with no relief in sight.
“The likelihood of petrol surpassing 150p per litre and diesel climbing towards 180p in the coming week signals what could be the most expensive Easter for motorists since the early stages of the Ukraine war in 2022,” Williams concluded.
These developments come shortly after reports that Rachel Reeves, Labour’s chancellor, considered easing the UK’s energy profits levy—a windfall tax—prior to the US and Israel’s attack on Iran on February 28.
Economic forecasts underscore the challenge ahead. KPMG has projected that the UK’s economic growth rate could slow from 1.3% in 2025 to 0.7% this year due to the energy shock dampening consumer spending.
Yael Selfin, KPMG’s chief economist, noted, “A weaker growth outlook combined with mounting cost pressures may force businesses to delay investments over the next year. Consumers are also likely to reduce discretionary spending to manage the burden of rising prices.”