Diesel hits record 199.18p per litre amid Iran conflict

Motorists across Britain are facing the highest ever petrol‑pump price for diesel, with the average cost rising to 199.18p a litre on Monday. The jump, the latest in a string of record highs, reflects the continuing impact of the United States‑Iran conflict on global oil supplies and the possible threat of a U.S. Export ban that could push prices even higher.

The Guardian reports that the price has climbed to 199.18p, the highest average for the last 12 years. It follows a 199.09p peak in June 2022, when the Russian invasion of Ukraine first pushed fuel prices to historic levels. Since the start of the U.S.‑Iran war on 28 February, diesel has surged by 56.8p, a rise that has “entered new uncharted territory,” the RAC’s Simon Williams warns.

Media additions

"The average price of a litre of diesel has now reached the highest level in UK history at 199.18p, in what will be a financial blow to households and businesses that use their vehicles regularly,"

Simon Williams, head of policy, RAC, via Guardian

RAC data also shows petrol prices climbing, with the average unleaded at 174.13p, up 41p since the war began. The rise in fuel costs is not only a hardship for drivers; it is a ripple effect that will touch every sector that relies on road freight. “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,” the RAC says, highlighting the supply‑chain shock that could hit supermarkets, construction, agriculture and e‑commerce.

On the political front, President Trump has signalled a strong possibility of a U.S. Diesel export ban, a move that could further tighten supply and push prices towards the £2‑per‑litre mark. The Yahoo News notes that motorway service stations have already been charging as much as 216p per litre, with some spots in North Wales exceeding £2. The risk of a U.S. Export ban is seen by experts on Aol as a potential “detonator” for a global inflation shock.

"The price of diesel could surge to £2.50 or even £3 a litre if US President Donald Trump goes ahead with the threat of a export ban on the fuel,"

Simon Williams, RAC, via Aol

Fuel duty policy is also under scrutiny. The Government has extended a 5p cut in fuel duty until the end of the year, but the RAC urges the Treasury to keep the discount in place beyond that point. A freeze would cushion the impact of rising wholesale costs. Forecourt Trader reports that Chancellor John Healey will discuss fuel duty in his October Budget, and that a 5p freeze could prevent an additional 5p per litre increase in spring.

Experts point to the combined effect of two supply shocks. Russia’s refinery output has fallen by a third due to drone attacks and the war, while the Strait of Hormuz remains a choke point for oil shipments. The Yahoo Finance UK article explains that the drop in Russian diesel output has forced other exporters to step up, raising wholesale prices worldwide. Meanwhile, the U.S.‑Iran conflict keeps the Strait of Hormuz “effectively blocked,” further constraining supply.

Industry voices warn that the high diesel price will ripple through the economy. Edmund King, president of the AA, says that “most delivery trucks are diesel, most goods transported on the roads to our ports are fuelled by diesel.” He stresses that the cost hike will be passed on to consumers. Express notes that the AA’s statement is a reminder that the diesel price is a “back‑door inflationary driver” for goods and services.

"Most delivery trucks are diesel, most goods transported on the roads to our ports are fuelled by diesel,"

Edmund King, president, AA, via Express

For motorists, there are immediate ways to mitigate the cost. The Express article lists nine practical tips, such as keeping tyres properly inflated, avoiding heavy acceleration, and using air conditioning sparingly. North Wales Live reports a new deal that gives motorists £5 cash back on fuel spending of £10 or more, a small but welcome offset in the face of soaring pump prices.

Looking ahead, the next key date is the Chancellor’s October Budget on 28 October, when fuel duty policy will be announced. Forecourt Trader reports that a 5p freeze could prevent an additional 5p per litre increase in spring.