UK Diesel Price Exceeds £2 Per Litre for the First Time Amid Global Fuel Surge
Diesel prices in the UK have surpassed £2 per litre on average for the first time, as the ongoing Iran war continues to drive up global fuel costs.
The average price of diesel in the UK has risen above £2 per litre (200.01p) for the first time, according to the RAC motoring body. This surge is attributed to the continuing impact of the Iran war on global fuel costs. Petrol prices are also on the rise, reaching an average of 174.71p per litre.
Highlights
- The average price of diesel in the UK has exceeded £2 per litre for the first time.
- The US is pressuring European nations to release more diesel stocks to lower global prices.
- US President Donald Trump has threatened to ban US fuel exports if Europe does not release more reserves.
- The EU has rejected the US threat, stating it would undermine trust in the US as a reliable partner.
- The Iran war and Ukrainian attacks on Russian refiners are severely disrupting global fuel supplies.
Details
According to the RAC, filling an average family car with diesel now costs £110, an increase of almost £32 since the start of the US/Iran war. The cost to fill a typical petrol car has also risen to £96.09, up £23.03 since February.
US President Donald Trump is considering a ban on US fuel exports, backing his Treasury Secretary Scott Bessent's call for European countries to release diesel supplies "immediately." This move aims to ease prices for American motorists ahead of midterm elections but could drive up prices elsewhere, including in the UK and the EU. The EU, however, "fully rejects" the US threat, stating it would undermine their trust in the United States as a reliable partner.
Why it matters
This significant increase in diesel prices not only impacts individual drivers but also has broader economic implications. It pushes up transport and delivery costs, making food production more expensive and contributing to inflationary pressures. The disruptions in global supply chains and geopolitical tensions continue to create uncertainty in energy markets, posing a threat to economic stability.