UK diesel prices hit record £2 a litre as fuel costs surge

  • Average UK diesel prices reached a record 200.01 pence a litre, or £2, according to the RAC.
  • Filling an average family car now costs £110, nearly £32 more than before the Iran war; a prolonged US export ban could push diesel above £3.
  • Economists warned the potential supply shock could lift UK inflation toward 5%, while Keir Mather said Britain is not facing a diesel shortage.

Average UK diesel prices reached a record 200.01 pence a litre, pushing the cost of filling an average family car to £110, nearly £32 more than before the Iran war. Economists warned that if President Donald Trump stopped US diesel exports for a prolonged period, prices could exceed £3 a litre, lift UK inflation by as much as one percentage point toward 5%, and strengthen the case for Bank of England interest-rate increases. The RAC attributed the sharp rise since late February to disruption of crude and refined-product supplies from the Gulf after the US-Israel war on Iran. Transport minister Keir Mather said the UK was not facing a diesel shortage after Trump threatened to cut off US fuel supplies. Road-fuel inflation is outpacing global oil-market gains because refineries damaged by war in the Middle East and Russia have reduced output. Russia supplied 10% to 15% of global diesel before the Ukraine war, while Gulf nations sent another 10% through the Strait of Hormuz before Iran disrupted the passage in response to US-Israeli attacks. Trump is pressing Volodymyr Zelenskyy to halt Ukrainian drone and missile attacks on Russian refineries, which could help ease the global fuel squeeze.

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