The average UK diesel price has moved above £2 a litre for the first time, according to the RAC motoring body, as fuel markets face disruption from the Iran war and a dispute over supplies between the US and Europe.
Diesel now costs 200.01p a litre on average, the RAC said. Petrol has reached an average of 174.71p a litre. The motoring body said price rises were “showing no signs of slowing, heaping more misery onto motorists”.
Over the past seven months, the Iran war has severely disrupted the production and transportation of wholesale oil and refined products from the region. The effects matter sharply in the UK because more than half of the diesel bought in the country is imported.
The US supplies less than a third of those imports, which amounts to around 17% of total UK diesel supply. That leaves the UK exposed both to disruption in international fuel markets and to any change in the availability of US exports.
President Donald Trump has threatened to ban US diesel exports. Such a ban would leave more diesel in the US domestic market ahead of the midterm elections in November. US Treasury Secretary Scott Bessent has urged European countries to release diesel supplies “immediately”.
The EU said on Friday that it “fully rejects” the US threat to ban diesel exports. EU countries agreed in March to release some stocks as part of an internationally co-ordinated response to the Iran war.
G7 leaders are due to discuss fuel supplies in a videoconference on Friday. Foreign Secretary Ed Miliband will represent the UK because Prime Minister Andy Burnham is attending his father’s funeral.
Higher diesel prices are also bearing on businesses that use fuel directly in their daily work. Mark Means, a farmer in Norfolk who has farmed for over 50 years, said he was “frightened to death” by the rising cost of diesel.
Means has spent £50,000 on new diesel tanks in an effort to make sure he has enough fuel to harvest and plant crops. His investment reflects the practical problem behind the price rise: fuel is both more expensive and a supply concern for users dependent on regular deliveries.
The scheduled G7 discussion comes as the UK faces a diesel price milestone alongside unresolved questions over US export policy, European stock releases and the continuing disruption to oil and refined-product flows from the region.
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