Diesel price hits all-time high in financial blow, RAC warns

The RAC estimates it now costs nearly £100 to fill a typical family car with diesel—£31 more than before the start of the Iran conflict. <i>(Image: Wikimedia Commons)</i>
The RAC estimates it now costs nearly £100 to fill a typical family car with diesel—£31 more than before the start of the Iran conflict. (Image: Wikimedia Commons)
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Diesel prices have hit a record high across the UK.

A litre now costs an average of 199.18p, according to the latest fuel price analysis by the RAC, surpassing the previous record of 199.09p set in June 2022.

Simon Williams, head of policy at the RAC, said: "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."

The RAC estimates it now costs nearly £100 to fill a typical family car with diesel—£31 more than before the start of the Iran conflict.

Rising prices are also affecting petrol users, with unleaded now averaging 174.13p per litre, adding up to nearly £96 for a full tank.

Mr Williams said: "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."

He believes that only a "sustained lower oil price" would reverse the current trend.

The RAC points to ongoing geopolitical tensions—including the US-Iran conflict and the continuing war between Russia and Ukraine—as key drivers of the price surge.

Mr Williams said: "The UK might have limited leverage when it comes to ending the US/Iran war and ultimately bringing oil prices down, but the Government could take steps to ease the burden on drivers by lowering fuel duty further or reducing VAT."

Meanwhile, the AA is calling for an extension and increase to the current fuel duty cut, warning that small businesses and rural diesel users are under the most pressure.

Luke Bosdet, road fuel price spokesman for the AA, said: "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.

"While many big businesses pass the extra cost of diesel onto their customers, often via a sliding scale of fuel surcharges, smaller businesses don’t automatically.

"These include taxi drivers, craftspeople, domestic repairs, vets, farriers, and many who rely on vehicles to look after their customers."

He also emphasised the impact on rural communities.

Mr Bosdet said: "Added to that, diesel is heavily used by rural communities who already face big road fuel bills because of the longer distances they have to drive.

"Often with lower wages, they need all the help they can get with road fuel costs."

The Government currently provides a 5p-per-litre reduction in fuel duty, equivalent to 6p per litre at the pump when VAT is included.

There had been plans to end the cut early next year, though rising prices may force a rethink.

Mr Bosdet warned that any further cut in fuel duty may not be passed on to consumers immediately.

He said: "The problem the Government and motorists face is how much of any further fuel duty cut would be passed on by fuel retailers, and when.

"In August, the CMA heavily criticised the road fuel trade for elevated margins and how quickly they passed potential savings on to their customers."

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