UK diesel price close to all-time high

Breaking news from the markets: UK diesel price close to all-time highImage source, Maskot/Getty ImagesPublished2 March 2026Updated 25 September 2026Diesel prices in the UK are expected to hit record levels over the weekend as the fallout from the US-Israel war with Iran continues to drive up costs. The average price of a litre of diesel at the pump stands at 198. 32p, according to the RAC motoring body.

That's close to the all-time high of 199. 09p recorded on 25 June 2022, following Russia's full-scale invasion of Ukraine. Simon Williams, head of policy at RAC, said the June 2022 high would "almost certainly be surpassed over the weekend as retailers continue to pass on the increases they're seeing when they buy new supply".

Economic Details

Over the past seven months, the Iran war has severely disrupted the production and transportation of wholesale oil across the region, causing the price of fuels made from oil to surge. Motor fuel prices fell back when the US and Iran agreed in June to a framework deal to end the fighting, but rose again as tensions resurfaced. Meanwhile, US President Donald Trump has responded to rising diesel prices by mulling a ban on US diesel producers selling overseas, in a move which could push up the UK price even higher.

How do wholesale oil prices affect the cost of petrol and diesel at the pump? Crude oil is a key ingredient in petrol and diesel, which means that higher wholesale costs make filling up a car more expensive. The price of petrol and diesel is also heavily influenced by demand and refining capacity.

Analysts say every $10 (£7. 44) per barrel increase in the oil price pushes up pump prices by roughly 7p a litre. Since the war began, the price of a barrel of Brent crude – the global benchmark for wholesale oil prices – has been very volatile.

Analyst Views

Generally speaking, news of further conflict drives the price up while hopes of an end to the war pushes the price down. Before the conflict, Brent was about $70 a barrel, but the fighting saw it peak at above $120. In early July, after the framework deal was signed, prices fell back to near the $70 a barrel mark.

The price climbed back up again after peace talks collapsed and it is now above $100 a barrel. What has happened to petrol and diesel prices in the UK? Before the war began, the average price of petrol was 132.

83p per litre and diesel was 142. 32p for a litre of diesel, the price is now near a record high. Meanwhile, petrol has hit an average 173.

Economists are analysing what the news means for the markets.