Rising fuels costs to have knock on effect across businesses
DIESEL prices have topped £2 per litre for the first time ever, according to a new report from the RAC.
The vehicle insurance firm has reported that the average price of diesel has risen to a record 200.01 pence per litre (ppl) for the first time, and is showing no signs of slowing.
Simon Williams, head of policy at RAC, said: “This is a pump price threshold that no-one wanted to cross – the average price of a litre of diesel has risen to a record 200.01p and is showing no signs of slowing, heaping more misery onto motorists. The cost of filling up an average family car is now £110, almost £32 more than it was at the start of the US/Iran war.
“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.”
The average price of a 55-litre tank of diesel now costs £110.01, which is £31.70 higher than 28 February when the conflict in the Middle East broke. The petrol equivalent now costs £96.09 – £23.03 higher than it did at the start of the conflict.
This matches with similar reports from the Office for National Statistics, which found that motor fuel costs broke new records in August 2026.
While many motorists may use petrol engines, Williams has noted that this will still have a wider impact across the FMCG sector with many haulage firms using diesel engines across HGVs.
This means moving goods across the UK will become more expensive and could push some firms to increase the price of moving goods which, in turn, could push retail destinations to increase their prices to cover these costs.
The RAC noted that the last time this record was broken was in June 2022, following Russia’s invasion of Ukraine, when prices reached 199.09ppl.
Williams has also warned that there is no sign of this decreasing any time soon and could potentially grow worse as time moves on due to further geo-political tensions from America.
He said: “US threats of a diesel export ban could cause prices to rise even further. Once again, it’s ordinary people who are left footing the bill for events far away, as the UK remains heavily reliant on fossil fuels and imported diesel.
“With electricity and gas bills also rising, household budgets will already be squeezed. Drivers will be looking to the Government to step in and ease the burden by lowering fuel duty further or reducing VAT in October’s budget.”
