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Diesel Tops £2 a Litre in UK for First Time

Higher pump prices from international supply shocks, together with elevated crude, are prompting ministers to consider duty or VAT changes ahead of the October 28 Budget.

Overview

  • Fuel analysis by the RAC shows diesel has reached a record 200.01p per litre, pushing the cost to fill an average family diesel car to about £110.
  • Drivers in towns such as Bolton report spending tens of pounds more each month and many say they are now cutting or questioning everyday journeys.
  • Businesses with large fuel needs say bills have jumped sharply, with one local haulier reporting a roughly £20,000 rise in monthly fuel spend and warning some costs may be passed to customers.
  • The RAC calculates a 45mpg diesel car now costs about 20p per mile and roughly £2,020 a year for 10,000 miles, and it is urging the government to lower fuel duty or reduce VAT.
  • Analysts and officials point to tighter refined-fuel availability from Middle East and Russia–Ukraine supply shocks and Brent crude trading above $100 as the main drivers of rising wholesale and pump prices.