The RAC has reported that diesel prices in the UK have reached a record high of 199.33p per litre, surpassing the previous peak of 199.09p set in June 2022. This surge is largely attributed to the ongoing conflict in the Middle East, which has disrupted the production and transportation of wholesale oil.

Since the conflict involving the US, Israel, and Iran began in late February, diesel prices have increased by 59p per litre, representing a rise of nearly 40%. Filling an average family vehicle with diesel now costs approximately £110, an increase of £31 since the start of the conflict. Petrol prices have also seen an upward trend, currently averaging 174.23p per litre.

The RAC’s head of policy, Simon Williams, warned that these record costs extend beyond individual drivers, noting that increased fuel expenses for haulage and logistics will likely be passed on to consumers. Williams indicated that pump prices are unlikely to drop until there is a sustained decrease in global oil prices over several weeks.

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Global supply has been further tightened by Russia's export ban on diesel, implemented following Ukrainian attacks on its refineries. The UK remains particularly vulnerable to these fluctuations due to a reliance on imports, as domestic refineries do not produce enough diesel to meet national demand.

Addressing the economic impact, the Chancellor stated that the government intends to discuss fuel duty and rising costs during next month's Budget. John Healey acknowledged the strain on families and businesses, stating, "We can't remove the cost of living pressures, we can't remove the prices that people are having to pay, but where we can we will act and we will give people just a bit of breathing space."

Source: BBC News