UK diesel prices have reached a record 199.18p a litre, while Donald Trump is considering restrictions on US fuel exports that could put further pressure on motorists and businesses.
The RAC said the average price had surpassed the previous high of 199.09p recorded in June 2022. Filling an average family car with diesel now costs almost £110, around £31 more than at the start of the US-Iran conflict.
The prospect of export curbs emerged as oil markets remained unsettled. Brent crude rose above 108 US dollars a barrel overnight, while the White House prepared a further announcement for 7pm UK time.
The extent of any proposed restrictions is unclear. Economists have warned that limiting US exports could reduce American diesel prices in the short term, but might drive them higher over a longer period by tightening supplies elsewhere.
There are also fears that restrictions by the world’s largest exporter could hit European economies and push countries in the region into recession.
Asked about the possible impact at a Labour conference event, Business Secretary Jonathan Reynolds said: “Clearly something like that … would be a significant concern to the UK.”
He added: “Our resilience comes from a diverse supply in a whole range of areas and fuel is no different to that.”
Mr Trump told Fox News while attending a golf tournament in Illinois: “We’re thinking about it very seriously…”
He continued: “That can oftentimes lead to a little bit of an increase on gasoline for cars, so we’re looking at it very seriously. We may do it.”
Calls for action on fuel costs
RAC head of policy Simon Williams said the record diesel price would affect households and companies that rely on vehicles, with higher transport costs potentially feeding through into the prices of goods and services.
“By eclipsing the previous highest price of 199.09p seen in June 2022, the diesel price has entered new uncharted territory,” he said.
Petrol prices have also continued to climb, with unleaded averaging 174.13p a litre. The RAC said that was 41p higher than at the start of the war and put the cost of filling a tank at almost £96.
Mr Williams called on Chancellor John Healey to ease the pressure on motorists in next month’s Budget, warning that only a sustained fall in oil prices over several weeks would bring cheaper pump prices.
Fuel duty accounts for 52.95p of the cost of every litre of petrol and diesel and raised £24 billion last year. A planned 5p increase was postponed by Prime Minister Sir Keir Starmer in May until the end of the year.
Opposition parties are urging Mr Healey to extend the freeze as drivers face the prospect of further rises.
