UK diesel prices exceed £2 a litre as Middle East conflict drives global fuel costs

UK pump prices pass threshold

The average cost of diesel fuel at forecourts across the United Kingdom exceeded two pounds per litre for the first time on Friday, according to data from the RAC motoring group. The national average reached 200.01 pence a litre, rising from 199.79 pence on Thursday and passing the previous high recorded in June 2022. Filling a standard 55-litre tank now costs £110.01, representing a £31.70 increase compared with 28 February, when prices stood roughly 40.5% lower. Petrol prices have also climbed significantly over the same period, reaching 174.8 pence per litre after an increase of nearly 34%.

The RAC described the threshold as a point of severe financial strain for motorists and logistics businesses across the country.

This is a pump price threshold that no one wanted to cross.

Global supply disruptions and government responses

The price surge follows months of supply constraints after the outbreak of the United States and Israeli conflict with Iran in late February. Disruptions in the Strait of Hormuz choked off vital Gulf export routes, which previously handled approximately 10% of global diesel shipments. In addition, global refinery output remains constrained due to the conflict and ongoing attacks on Russian energy infrastructure. Prior to the war in Ukraine, Russia supplied between 10% and 15% of the world's diesel.

United States President Donald Trump has urged Ukrainian President Volodymyr Zelenskyy to halt drone and missile strikes on Russian refineries to ease the global fuel squeeze. Trump has also weighed a potential ban on United States fuel exports while suggesting European nations release emergency diesel reserves. In London, United Kingdom Transport Minister Keir Mather rejected concerns over domestic supply deficits on Friday, stating that the country is not facing a diesel shortage.

Heavy pressure on transport operators

Rising fuel costs have created acute difficulties for independent freight operators and commercial fleets in both Britain and the United States. In Shropshire, commercial driver training firm Dulson Training reported that diesel costs have risen by up to 50 pence a litre excluding value-added tax over the past 12 months. In Northern Ireland, where over half of private cars run on diesel compared with the UK average of one third, average prices reached 193.3 pence per litre over the past week.

In the United States, national diesel prices reached $6.39 per gallon, up from $3.71 a year ago, with California recording an average of $8.38 per gallon according to the American Automobile Association. Commercial truck drivers face fuel costs exceeding $1,000 per tank, squeezing margins for independent operators who face fixed monthly vehicle and insurance costs.

This is crushing to our industry. When fuel goes up a dollar a gallon at the pump, that's another $400 per week that they have to spend. That's a huge, huge hit to a small business trucker.