UK diesel prices have crossed £2 per litre for the first time, reaching an average of 200.01p, according to the RAC motoring group. Petrol prices have also climbed to 174.71p per litre on average, the group said.
The RAC described the rise as showing no signs of slowing and bringing "more misery onto motorists". Filling an average family diesel car now costs £110, nearly £32 more than when the Iran conflict began seven months ago, the RAC said.
Regional conflicts are driving the supply constraints. The Iran war has disrupted production and transportation of wholesale oil and refined products from the region over the past seven months, causing prices to surge globally. Ukrainian attacks on Russian refiners have further constrained world diesel supplies. China has also restricted exports of refined fuels.
The price spike is rippling through the UK economy. Mark Means, who has farmed in Norfolk for over 50 years, said he was "frightened to death" by rising costs. He spent £50,000 on new diesel tanks to secure supply for harvesting and planting but said higher prices are cutting into his margins. "It feels like it's an assault," he said. Steven Tompkins, a driving instructor in Leicester, said rising fuel prices force him to increase his fees, creating hardship for young part-time workers already on tight budgets.
The RAC's policy head, Simon Williams, called £2 a "price threshold no one wanted to cross", warning it would challenge "commuters, haulage and delivery firms, businesses with large fleets all the way through to sole traders". Even non-drivers face knock-on effects from higher delivery costs and increased food production expenses.
On Friday, G7 nations agreed to release 100 million barrels of oil to prevent further price increases. The group also agreed member countries would not impose export restrictions on each other. This followed US President Donald Trump's threat to ban American diesel shipments overseas, a move that would have raised global prices but eased pressure on US consumers ahead of November's midterm elections.
A UK government spokesperson said the country has "a diverse and resilient supply" and continues engaging with international partners and the fuel industry, stressing there is no cause for concern about potential diesel shortages. Over half of UK diesel is imported, with less than a third of imports coming from the US, amounting to roughly 17% of total UK supply.