The average price of diesel in the United Kingdom has surpassed £2 per litre for the first time, reaching 200.01p, according to the RAC motoring group. This milestone coincides with a pledge from G7 nations to release 100 million barrels of oil in a coordinated effort to curb further price spikes and stabilise global supplies.
Simon Williams of the RAC noted that fuel costs continue to rise without sign of slowing, describing the situation as adding “more misery onto motorists.” Alongside diesel, petrol prices have also climbed to an average of 174.71p per litre. The cost of filling an average family car with diesel now stands at approximately £110, an increase of nearly £32 since the onset of the US-Iran conflict in February. Petrol fill-ups have risen to £96.09, up by £23.03 over the same period.
The G7 agreement, which includes the US, UK, Canada, Japan, Germany, Italy, and France, along with EU representation, aims to shield households from volatility in oil markets. In a joint statement, the group confirmed they would implement the release through the International Energy Agency (IEA) immediately over four months, with a significant portion of diesel allocated within the first 20 days. Additionally, members agreed not to impose export restrictions on one another, a move designed to avoid exacerbating tensions after President Donald Trump had threatened to ban overseas shipments of US diesel.
The threat of an American export ban had loomed over European markets, particularly as countries sought to bolster their own reserves amid supply disruptions caused by the war in the Middle East, Ukrainian attacks on Russian refineries, and export restrictions from China. The G7’s consensus effectively averted the proposed ban.
British businesses and consumers are feeling the strain of the surge. Mark Means, a farmer in Norfolk with over 50 years of experience, described the rising costs as “an assault.” Despite investing £50,000 in new diesel storage tanks to secure supply for harvesting and planting, he warns that shrinking margins are making his livelihood increasingly difficult.
Steven Tompkins, a driving instructor in Leicester, highlighted the broader economic impact, stating that he is forced to raise prices for students who are already on tight budgets. “It’s hurting,” he said, reflecting the widespread financial pressure across sectors reliant on transport.
UK government ministers attempted to calm anxieties, asserting that the country maintains a “diverse and resilient” fuel supply and that there is no cause for concern regarding shortages. Currently, more than half of the diesel consumed in the UK is imported, with less than a third originating from the United States, accounting for roughly 17% of total UK supply.
My van costs an arm and a leg to run now. Hope the G7 release actually hits the pumps soon, not just the markets.
100 million barrels sounds like a lot, but will it really drop prices for us? Feels like too little, too late.