Diesel prices have been increasing for several months, impacting UK drivers who rely on their vehicles for daily commutes and long-distance travel. The cost per litre has risen steadily, affecting household budgets and prompting concerns about future fuel affordability. While fluctuations in global oil prices play a role, other factors are also influencing the market.
Diesel Prices Continue to Climb, Adding Pressure on UK Motorists
Drivers of diesel vehicles in the UK are facing a fourth consecutive month of fuel price increases, with the cost per litre rising by 6p since October 2024, according to the RAC. As of January 2025, the average price for a litre of diesel has reached 145.7p, making the cost of filling a standard family car’s tank approximately £80.15.
This increase is putting additional strain on motorists, particularly high-mileage drivers, who could see their annual fuel costs rise to £4,167 if prices remain unchanged. That represents an increase of approximately £180 compared to four months ago.
While petrol prices have also risen, with drivers now paying an average of 139p per litre, diesel car owners have been the hardest hit by the latest surge.
Factors Behind the Rising Diesel Costs
The fluctuation in diesel prices and global oil prices is a key driver of these increases. In recent months, crude oil prices surged to $80 (£64) per barrel, influencing fuel costs at the pump. However, analysts predict that oil prices could fall below $70 (£56) per barrel in the coming months, which may offer some relief to drivers.
Simon Williams, RAC Head of Policy, acknowledged the ongoing financial burden for motorists, stating:
“It’s not been a good start to 2025 for drivers at the pumps with prices going up for the fourth month in a row. Sadly, filling up is now nearly £3 more expensive than it was at the start of October.”
However, he also suggested that there might be some relief ahead, as some analysts forecast that the price of oil could stabilise at a lower rate:
“While the price of oil can be notoriously volatile, there’s reason to think forecourt fuel prices may get cheaper in the coming months as some analysts are predicting an average oil price nearer to $70 this year.”
Declining Demand for Diesel Vehicles
Despite their previous popularity due to better fuel economy and longer driving range, diesel vehicles have seen a steady decline in demand over recent years. This shift has been driven by several key factors, including stricter emissions regulations, increasing taxation on diesel cars, and growing consumer interest in electric and hybrid alternatives.
The 2015 emissions scandal, which exposed manipulated diesel emissions data, significantly impacted public trust and government policy regarding diesel engines. In response, many UK cities introduced low-emission zones (LEZs) and clean air charges, making diesel ownership more expensive in urban areas.
According to data from the Society of Motor Manufacturers and Traders (SMMT), new diesel car registrations in the UK fell by 7.7% in January 2025, with just 8,625 new models sold. Diesel cars now make up only 6.2% of the total new car market, highlighting a major shift in consumer preferences towards cleaner and more fuel-efficient alternatives.
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