The average price of diesel in the UK is on course to break its all-time record next week, the RAC has warned, as businesses said the surge in fuel costs will leave them with no choice but to raise their own prices.
Diesel now averages 195.32p per litre, according to the motoring organisation, just 4p short of the record 199.09p set in June 2022. The RAC said the price is «likely» to surpass that high in the coming days, urging drivers to fill up before costs climb further.
The warning comes as businesses across the country said they are being squeezed by the relentless rise in diesel costs. Hauliers, farmers and other operators that rely heavily on diesel have warned that the increases will have to be passed on to customers, adding to the broader cost-of-living pressure.
Diesel is central to the UK economy because it powers the vast majority of goods vehicles, from delivery vans to heavy lorries, as well as much of the agricultural machinery used to produce food. When diesel prices rise, the cost of moving goods from ports and warehouses to shops and homes rises with them, feeding through to shelf prices.
The RAC said the record is now within touching distance. «The average price of diesel is now 195.32p per litre, which is just 4p off the record of 199.09p set in June 2022,» the organisation said, adding that a new high is «likely» next week.
The last time diesel hit its record, in June 2022, the surge followed Russia's invasion of Ukraine, which sent global energy markets into turmoil. Prices later eased, but they have been climbing again in recent months, driven by renewed pressure on global oil markets and the cost of refining crude into diesel.
For households, the impact is felt both at the pump and in the shops. Higher diesel prices mean more expensive deliveries, which in turn push up the price of food and other essentials. The warning from the RAC therefore adds to an already difficult picture for consumers, who have faced rising bills across energy, food and borrowing costs.
Business groups have repeatedly warned that fuel costs are one of the most difficult expenses to absorb. Unlike some overheads, diesel is bought continuously and in large volumes by transport firms, meaning even a few pence per litre can translate into thousands of pounds in extra costs each year for a single operator.
The RAC's advice to drivers is straightforward: fill up now, before the record is broken. But for businesses, the warning is more serious. Many have already seen margins eroded by higher wages, energy bills and borrowing costs, and they say there is little room left to absorb another sustained increase in fuel prices.
If diesel does set a new record next week, it will mark the first time the price has exceeded the June 2022 peak, a symbolic moment that is likely to intensify the debate over the cost of living and the pressure on the UK economy.