UK diesel price hits all-time high amid Middle East supply crunch, RAC warns

The average price of diesel in the UK has surged to a record-breaking high of 199.18p per litre, eclipsing previous peaks set in 2022.

According to the RAC, ongoing Middle East conflicts and global refining constraints are heavily driving up costs for motorists and freight operators alike.

As reported, the sharp escalation is driven primarily by intense geopolitical conflicts and tightening global oil supplies.

Analysts note that ongoing military escalations in the Middle East and supply disruptions affecting major refining hubs have sent crude benchmarks soaring.

Automotive and logistics organizations have warned that the fallout extends far beyond individual motorists. Because commercial freight, delivery vans, and heavy goods vehicles rely heavily on diesel, the soaring fuel costs are expected to cascade through supply chains, adding inflationary pressure to consumer goods and retail prices nationwide.

Experts caution that unless global oil prices experience a sustained downturn over multiple weeks, pump prices will remain stubbornly near the 200p threshold.

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.

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.

"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.