Price of diesel reaches all-time high

Diesel prices have reached a record 199.18p per litre, adding further cost pressure for businesses that depend on vehicles, deliveries, and logistics. The UK imports around 55% of its diesel, with roughly a third of those imports coming from the USA, while restrictions on US diesel exports create another potential supply risk. The market briefing indicates analysts believe export restrictions could push European diesel prices substantially higher.

The RAC estimates that the cost of filling an average family car with diesel is now almost £110, £31 more than it was at the start of the Iran war, a rise of 40% since 28 February.

Simon Williams,  Head of Policy at the RAC said, “The diesel price has entered new uncharted territory; this spells pain not only at the pumps for drivers, but for everyone who buys goods or services that rely on diesel lorries and vans. Undoubtedly, these increased costs will be passed on to consumers.

“As things stand, another 5p a litre will be loaded onto pump prices by the spring if the current fuel duty cut is fully reversed as planned. VAT receipts from fuel are also extremely high.”

Dr Jonathan Owens, an operations and supply chain expert at the University of Salford said, “The consequences [of soaring fuel prices] could reach almost every part of UK economic life: supermarkets, manufacturing, construction, agriculture, e-commerce and countless other sectors that depend upon road freight.”

“So, a geopolitical event and potential policy decision thousands of miles away can travel rapidly through our supply chain: from a refinery to a tanker, to a UK haulier, to a distribution centre, to a supermarket shelf, and ultimately, the price will be paid by the consumer.”