The debate has intensified as diesel climbed to 199.18p per litre, surpassing the previous record of 199.09p recorded in June 2022. Petrol prices have also risen, while Chancellor John Healey has said that decisions on support for motorists will be considered as part of the Budget rather than announced in advance.
Diesel Prices Reach a New UK Record
The average UK diesel price has risen to 199.18p per litre, according to Fleet News, with some company car and van drivers already paying more than £2 per litre at individual forecourts. At the start of the Middle East conflict on 28 February, diesel stood at 142.38p per litre, based on RAC figures reported by the publication.
Simon Williams, head of policy at the RAC, said the price had reached “the highest level in UK history”, describing the increase as a financial burden for households and businesses that use vehicles regularly.
The cost of filling an average family car with diesel has consequently risen to almost £110, around £31 more than at the start of the US-Iran conflict. Unleaded petrol has also increased to an average of 174.13p per litre, leaving a full tank costing nearly £96.
Williams said lower pump prices would require oil prices to remain lower for a sustained period rather than for only a few days. He also said the government could respond domestically by reducing fuel duty further or cutting VAT.
According to Fleet News, reports suggest the UK currently has 42 days of diesel held in emergency stockpiles. The country is also described as relying on imports for more than half of its diesel use, while around 31% of UK diesel imports come from the United States.
Motoring Groups Call for the Planned 5p Rise To Be Dropped
The existing fuel duty cut is scheduled to be fully reversed by mid-2027, restoring the previous 57.95p rate. Birmingham Live reports that the process involves phased increases, with the full 5p reversal expected in 2027.
Gordon Balmer, executive director of the Petrol Retailers Association, has urged the Chancellor to abandon the increase. He said retailers were attempting to protect customers from rising wholesale costs by absorbing some of the pressure themselves. According to data from EdgePetrol cited by Balmer, diesel retail margins have fallen by 21% since July.
The AA has called for the government to go further. Its president, Edmund King, said the planned 5p increase could be cancelled and another 5p removed from fuel duty, arguing that higher VAT receipts resulting from rising pump prices could offset part of that reduction. FairFuelUK has separately called for an immediate 10p fuel duty cut rather than waiting for the Autumn Budget.
Healey has not announced a change in policy. Speaking to ITN, he said he was “concerned” about the pressure of fuel costs on individuals and businesses, adding that decisions would be made “in the round at the Budget”. For motorists, the immediate position therefore remains unchanged: diesel is at a record average price, while the planned reversal of the 5p duty cut remains in place unless the government announces otherwise.
