The cost of diesel in the UK is on track to reach an all-time high this week, with the average price per litre hitting 195.32p, just shy of the record 199.09p established in June 2022. This surge means that filling a typical family car now costs approximately £107.43.
Simon Williams, head of policy at the RAC, highlighted the rapid rise, noting that diesel prices have increased by nearly 12p during the past month, including a 5p jump in the last week alone. He emphasised that since the outbreak of war in Iran at the end of February, the average cost of a diesel fill-up has risen by £29, or 37%. For families topping up twice monthly, this translates to an additional £58 spent on diesel and £43 more on petrol.
Alan Gelder, an industry analyst at Wood Mackenzie, warned that ongoing conflicts in Iran and Ukraine could cause diesel prices to climb even further. He suggested retail prices in the UK might surpass £2.30 per litre if hostilities persist, significantly exceeding the previous record of £1.99 per litre. Gelder stated there appears to be no immediate resolution to these conflicts, meaning prices are expected to continue rising.
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Williams reiterated that diesel is likely to set a new record soon, given its current proximity to the previous high of 199.09p from 25 June 2022.
The price increases come amid political discussions surrounding international conflicts. Labour Party chair and Minister for Women and Equalities, Bridget Phillipson, commented on the effects of the Iran situation on the upcoming Autumn Budget. She dismissed concerns that past criticisms of former US President Donald Trump by Labour figures, including Prime Minister Andy Burnham, would affect UK-US relations as Burnham prepares to meet Trump at the United Nations.
Phillipson remarked that differing political views are commonplace and need not impede strong diplomatic relations. She also stated that although the UK economy is in a robust position with positive growth figures, the impact of the Middle East conflicts remains a significant challenge for businesses and families in Britain.
She explained that the government’s decision to stay out of the Iran conflict was appropriate, contrasting it with what she suggested would have been a different approach under alternative leadership. She acknowledged the challenges these international events pose domestically and indicated that measures to alleviate the cost of living are central to the government’s forthcoming budget preparations, with Prime Minister Burnham and the Chancellor focused on providing households with financial support during these difficult times.