The price of filling a regular family vehicle with diesel has surged above £100 due to escalating prices linked to the ongoing conflict in the Middle East. Recent data from the RAC reveals that the average diesel prices at UK fuel stations reached 182.8p per liter on Tuesday, marking a 40p increase since the conflict commenced on February 28.
This surge means that the total expense to fill a standard 55-liter family car now stands at £100.52, surpassing the £100 mark for the first time since December 2022. Concurrently, the average cost of petrol has risen to 152.8p per liter, climbing by 20p since the conflict began.
According to Simon Williams, the head of policy at RAC, there are indications that the price of petrol could stabilize if oil costs do not escalate further, although diesel prices are anticipated to continue rising. The RAC Foundation, a motoring research charity, cautioned this week that drivers have collectively paid an additional £409 million for diesel and £135 million for petrol as a result of these price hikes.
Steve Gooding, director of the RAC Foundation, estimates that motorists will have incurred costs exceeding a billion pounds at fuel stations within the next few weeks if the current rate of increases persists. He highlighted that drivers have paid well over half a billion pounds in extra expenses since the conflict began, with daily increases amounting to around £37 million.
The surge in wholesale fuel prices is attributed to the soaring oil prices following the disruption in the Strait of Hormuz, which has caused Brent crude to reach $116 a barrel. Approximately 20% of the world’s oil and natural gas typically transits through this strait.
In response, the government has advised drivers to compare fuel prices in order to save money and has released a list of third-party fuel-price apps and websites. Since February 2, all UK fuel stations have been mandated to promptly report price changes to the Fuel Finder database, enabling motorists to compare prices through various apps.
Luke Bosdet, the Road Fuel Expert at the AA, noted the significant increase in the use of fuel-price search tools, emphasizing the effectiveness of the price transparency initiative by the UK government in assisting drivers to find savings.
Chancellor Rachel Reeves recently met with industry leaders and urged petrol retailers to collaborate in keeping prices at a reasonable level for drivers.