UK Diesel Prices Hit Record Highs Amid Iran War Impact

Diesel prices in the United Kingdom have reached a record high, driven by the impact of the US-Israeli war on Iran and disruptions to global fuel supplies, according to motoring organisation RAC.

The price of diesel has risen to 199.18 pence per litre, surpassing the previous record of 199.09 pence recorded in June 2022 following the energy shock caused by Russia’s invasion of Ukraine.

The RAC said filling an average family car with diesel now costs nearly £110, about £31 more than before the conflict began.

The surge in diesel prices is also increasing transportation and logistics costs because diesel is widely used in industries, agriculture and freight transport.

RAC policy chief Simon Williams said that only a sustained decline in global oil prices over several weeks could bring down fuel prices at British pumps. He also suggested that the government could reduce fuel duty or VAT to ease pressure on motorists.

Rising fuel costs are contributing to inflation in the UK, which reached a five-month high in August, adding to the cost-of-living pressures facing households.

Despite the increase, the UK remains cheaper than several European markets. RAC data for September 21 showed that the UK was tied with Italy for the seventh-highest diesel prices among 15 European countries.

Global diesel prices have risen sharply in recent months due to reduced refining capacity and supply disruptions linked to conflicts in the Middle East and Ukraine.

Prices rose further after US President Donald Trump backed a possible ban on US diesel exports, raising concerns that fuel-importing countries such as the UK could face difficulties finding alternative supplies.

The UK currently has four operating oil refineries with a combined processing capacity of about 1 million barrels per day, down from 1.27 million barrels per day across six refineries in 2024.

The country imports nearly 55% of the diesel it consumes, while diesel accounted for almost 40% of total UK oil-product imports in 2025. The United States supplied about 31% of those imports.