UK diesel prices top £2 a litre for first time, RAC says

Breaking news from the markets: UK diesel prices top £2 a litre for first time, RAC says Figure caption, Watch: Diesel prices in the UK have hit an all time high - here's whyByLucy Hooker, Business reporter and Archie Mitchell, Business reporterPublished2 October 2026The average price of diesel has risen above £2 a litre in the UK for the first time, according to the RAC motoring group. 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". 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.

Economic Details

Ukrainian attacks on Russian refiners have further constrained supplies of diesel on the world market. China has also restricted exports of refined fuels. Separately on Friday, G7 nations agreed at an urgent meeting to release 100 million barrels of oil to head off further price increases.

The G7 also agreed member countries would not impose export restrictions on each other, after US President Donald Trump threatened to ban shipments of American diesel overseas. The move would have pushed up global prices of the fuel, but helped ease pressure on US consumers ahead of November's midterm elections. RAC policy head Simon Williams said £2 was a "price threshold no one wanted to cross".

"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. UK businesses and consumers already feel like they are bearing the brunt of higher prices, with many saying it has made 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.

Analyst Views

'It feels like an assault'Image caption, Farmer Mark Means says higher diesel prices are pushing up his costs dramaticallyMark 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. UK government ministers strove to reassure diesel users earlier on Friday.

"We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry," a government spokesperson said.

Financial markets are tracking the development closely as investors assess the likely impact.