UK diesel price hits £2 a litre as US calls for Europe to release more stocks
PA MediaThe average price of diesel has risen above £2 a litre in the UK for the first time, according to the RAC motoring body, as the fallout from the Iran war continues to push up the cost of fuel.
Diesel has now hit an average of 200.01p a litre, the RAC said, and petrol prices are also still rising, reaching 174.71p a litre on average.
The motoring group said price rises were "showing no signs of slowing, heaping more misery onto motorists".
G7 leaders will attend a videoconference on Friday to discuss fuel supplies after the US put pressure on European countries to release more of their diesel stocks.
Foreign Secretary Ed Miliband will attend on behalf of the UK as Prime Minister Andy Burnham is attending his father's funeral.
President Donald Trump has threatened to ban US exports of the fuel in a bid to protect US consumers.
Banning exports would mean more US diesel for the domestic market, which could ease prices for American motorists ahead of the midterm elections in November.
However, it would be likely to push up prices elsewhere, including in the UK and the EU.
US President Donald Trump said he was considering a ban, and backed his Treasury Secretary Scott Bessent who has urged European countries to release diesel supplies "immediately", arguing that US farmers, truckers, and businesses "should not be left carrying the burden" as prices soar.
UK businesses and consumers already feel like they are bearing the brunt of higher prices, however, with many saying it makes their lives increasingly difficult.
Even people who do not drive a diesel vehicle themselves face a knock-on effect from rising delivery costs or the higher cost of producing food.
'It feels like an assault'
Mark Means, who has farmed in Norfolk for over 50 years, said he was "frightened to death" by the rising costs of diesel.
He has spent £50,000 on new diesel tanks to try to ensure he has enough supply to harvest and plants crops, but the rising price is cutting into his margins.
"It feels like it's an assault," he said.
Steven Tompkins in Leicester said rising fuel prices mean driving instructors like him are having to increase their prices.
"When you've got kids who are working part time, they're on a tight budget and we're telling them that the prices are going to have to go up because of the fuel, it's hurting," he said.
On Friday, the EU said it "fully rejects" the US threat to ban diesel exports if Europe fails to release more of its reserves onto the market.
"It would undermine our trust in the United States as a reliable partner," an EU spokesperson said.
EU countries agreed in March to release some stocks as part of an internationally co-ordinated response to the Iran war. With prospects for the war and fuel supplies still uncertain, not all EU countries have met those commitments.
UK government ministers said they were working with both the US and the EU.
"We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry," a government spokesperson said.
The government has stressed that there is no cause for concern about potential diesel shortages, though prices are expected to rise further.
Over half of the diesel bought in the UK is imported. Less than a third of imports are from the US, amounting to around 17% of the total UK supply.
Over the past seven months, the Iran war has severely disrupted the production and transportation of wholesale oil and refined products from the region, causing prices to surge worldwide.
Ukrainian attacks on Russian refiners have led to further constraints on supplies of diesel to the world market. China has also restricted exports of refined fuels.
The cost of filling an average family car with diesel is now £110, almost £32 more than it was at the start of the US-Iran war, the RAC's Simon Williams said.
"This will be very challenging for households and companies that drive a lot of miles, from commuters, haulage and delivery firms, businesses with large fleets all the way through to sole traders," he added.
The cost of filling a typical petrol car has risen to £96.09, the RAC said, up £23.03 since February.
