The average UK diesel price rose to a new record of 199.53p a litre on Tuesday, moving within half a penny of £2 for the first time. The latest increase follows Monday’s previous record of 199.18p.
Diesel has risen from 142.38p a litre at the start of the US-Iran conflict, an increase of around 57p, or roughly 40%.
At Tuesday’s average price, filling a typical 55-litre family diesel car costs about £109.74, around £31 more than before the conflict began.
The rise has been driven by a combination of higher crude oil prices and an increasingly tight global market for refined diesel, with disruption to refinery capacity adding further pressure.
Ukrainian attacks on Russian refining infrastructure have reduced output from one of the world’s major fuel-producing regions, while wider geopolitical disruption in the Middle East has tightened global energy markets further.
That means diesel prices can remain elevated even if crude oil falls, because shortages of refined fuel can keep wholesale prices and refinery margins high.
For markets, the main risk is higher transport and operating costs feeding into inflation, particularly across haulage, construction, agriculture and distribution.
At 199.53p, the UK average needs to rise by only 0.47p per litre to break through £2.
Investor takeaway: UK diesel has reached another record at 199.53p a litre, leaving the national average just 0.47p below £2. Higher fuel costs are increasing pressure on transport-intensive businesses and could add to inflation if sustained.
