UK diesel prices hit record highs due to impact of Iran war

UK Diesel Prices Hit All-Time High Amid Impact of Iran Conflict

Record Diesel Prices and Their Economic Impact

LONDON, Sept 28 (Reuters) - The price of diesel at the pump in the United Kingdom has hit record highs due to the US-Israeli war on Iran, the motoring body RAC said in a release on Monday. 

Effects on Motorists and Industry

As well as hitting motorists' pockets, high diesel costs are adding to logistical and transport costs for a vast array of goods, as the fuel is widely used in industry and agriculture.  

Current Diesel Price Statistics

The cost of a litre of diesel is now 199.18 pence and the cost of filling up an average family car is now almost £110, £31 more than before the conflict began, Simon Williams, the RAC's head of policy, said in the release.

Comparison to Previous Highs

The price high on Monday eclipsed the previous highest price of 199.09 pence in June 2022, during the acute energy market shock in the aftermath of Russia's full-scale invasion of Ukraine.

Government Response and Policy Suggestions

"Only a sustained lower oil price — over several weeks, not days — will lead to cheaper prices at the pumps ... the government could take steps to ease the burden on drivers by lowering fuel duty further or reducing VAT," Williams said. 

Broader Economic Consequences

Fuel prices are one of the key drivers of UK inflation, which hit a five-month high in August, adding pressure on consumers who are grappling with a protracted cost of living crisis.

Global Market Factors

International diesel prices have surged to record highs in recent months due to shrinking global refining capacity and supply disruptions from conflicts in the Middle East and Ukraine. 

Recent Price Jumps and Export Concerns

Prices jumped again last week after U.S. President Donald Trump voiced support for a potential ban on U.S. diesel exports, which would leave net importers like the UK and other European nations scrambling for few alternatives.

UK Diesel Supply and Imports

The UK has four working oil refineries with a combined crude processing capacity of 1 million barrels per day, down from 1.27 million bpd across six plants in 2024, as two sites closed last year. 

Import Statistics and Sources

Imports of diesel made up nearly 40% of the UK's total imports of oil products in 2025, with the U.S. making up 31% of this total, according to the recent Digest of UK Energy Statistics. The UK imports nearly 55% of the diesel it consumes.

(Reporting by Seher Dareen in London; Editing by Paul Simao)