Full Breakdown
UK Diesel Prices Hit All-Time High Amid US-Iran Conflict
By Drooid · · How we work
Record Diesel Price at the Pump
The RAC reports the average diesel price hit 199.18 p on 28 September, beating the previous record of 199.09 p set on 25 June 2022. Filling an average family car now costs almost £110, £31 more than at the start of the US-Iran conflict on 28 February. Unleaded petrol averages 174.13 p per litre, about 41 p higher than in February.
Background and Geopolitical Drivers
The surge follows several intertwined disruptions:
- The US-Iran war has blocked the Strait of Hormuz, limiting crude and refined product flows.
- Russia’s diesel export ban, prompted by Ukrainian attacks on its refineries, has tightened global supply.
- Ongoing fighting in Ukraine continues to affect Russian output.
These factors have reduced diesel availability on world markets, pushing wholesale prices up and passing the cost through to UK forecourts.
Data & Statistics
- Diesel price up 59 p per litre (? 40 %) since the conflict began.
- Petrol price up 41 p per litre over the same period.
- The increase represents 56.8 p more than the price on 28 February, when diesel averaged 142.38 p per litre.
- The Department for Transport recorded 15.1 million diesel-fuelled vehicles on UK roads at the end of June, down from 15.7 million a year earlier; 9.8 million of these are cars.
Official Statements & Responses
- Donald Trump, U.S. President, has signalled he is “very seriously” considering a ban on U.S. diesel exports, a move that could further lift UK prices.
- The UK government has extended a 5 p-per-litre fuel-duty cut until the end of the year but faces pressure to broaden the discount or reduce VAT to offset the rise.
- Luke Bosdet, AA road-fuel price spokesman, argued that diesel “could get further relief” as prices near the July 2022 record and warned that rural communities bear a disproportionate burden.
Criticism & Opposition
The AA has called for additional fuel-duty relief, noting that smaller businesses and rural users may not see immediate benefits from any further cuts because retailers can retain margins.
Verbatim Quotes
- “The diesel price has entered new uncharted territory,” — Simon Williams
- “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,” — Dr Jonathan Owens, University of Salford
- “There would be a good argument for diesel getting further relief as it nears the July 2022 all-time record of 199.1p a litre.” — Luke Bosdet
What’s Next
- A U.S. diesel export ban remains under consideration by President Trump, which could push UK prices higher.
- Industry groups such as the AA continue to lobby for further duty reductions or VAT adjustments before the next fiscal review.