UK diesel prices hit record highs due to the impact of the Iran war, with the average cost of a litre reaching 199.18 pence, the motoring body RAC said on Monday. The milestone surpasses the previous record of 199.09 pence set in June 2022 during the energy market shock that followed Russia’s full-scale invasion of Ukraine.
The conflict, described by the RAC as the US-Israeli war on Iran, has driven up international diesel prices through shrinking global refining capacity and supply disruptions in the Middle East and Ukraine. Those pressures have been compounded by recent market jitters after US President Donald Trump voiced support for a potential ban on US diesel exports, a move that would leave net importers such as the UK and other European nations scrambling for alternatives.
For British motorists, the financial strain is immediate. Filling an average family car now costs almost £110, which is £31 more than before the conflict began, according to Simon Williams, the RAC’s head of policy. Beyond the forecourt, the high cost of diesel is feeding into logistical and transport expenses across a vast array of goods, because the fuel is widely used in industry and agriculture.
“Only a sustained lower oil price — over several weeks, not days — will lead to cheaper prices at the pumps,” Williams said, adding that the government could take steps to ease the burden on drivers by lowering fuel duty further or reducing VAT.
The record pump price comes as fuel costs remain one of the key drivers of UK inflation, which hit a five-month high in August. That combination adds further pressure on consumers who are already grappling with a protracted cost-of-living crisis.
Despite the new high, UK diesel prices are still lower than in several European markets. RAC data for September 21 showed the UK tied with Italy for the seventh-highest diesel prices among 15 European countries, with the Netherlands, Denmark, Finland, Germany, Belgium and France ranking above it.
The broader supply picture remains tight. The UK has four working oil refineries with a combined crude processing capacity of 1 million barrels per day, down from 1.27 million bpd across six plants in 2024, after two sites closed last year. Diesel imports made up nearly 40% of the UK’s total imports of oil products in 2025, with the United States accounting for 31%, according to the recent Digest of UK Energy Statistics. Overall, the UK imports nearly 55% of the diesel it consumes, leaving it exposed to shifts in global trade policy and overseas refinery output.
International diesel prices have surged to record highs in recent months, lifted by the combination of constrained refining capacity and geopolitical conflict. The market reaction to the possibility of a US export ban underscored how quickly sentiment can tighten supply expectations for import-dependent economies.
As the UK absorbs the highest pump prices on record, the RAC’s message points to the limits of short-term relief. Without a sustained fall in oil prices over several weeks, or further government intervention on fuel duty and VAT, drivers and businesses are likely to keep feeling the squeeze from a global diesel crunch that shows few signs of easing.
Source: ARY News