Diesel drivers are now paying 20p per mile to run their cars, according to new analysis from the RAC, as the average price of a litre of diesel in the UK passes £2 for the first time.
A litre now costs an average of 200.01p, up from 199.79p on Thursday. The breakdown service warned that current conditions will be "very challenging" for diesel drivers, with no real signs of price rises slowing.
Cost per mile for average diesel car
For the average diesel car, which runs at 45mpg fuel economy, drivers are now paying an eye-watering 20p per mile to run on diesel. This could be even higher for those driving in the city, or paying slightly more than the average price for fuel already.
Neither Chancellor John Healey nor Prime Minister Andy Burnham have confirmed or denied whether the fuel duty reduction, currently frozen at 5p off per litre, will be extended again when it expires at the end of 2026. They have asked drivers to wait until the Budget to find out what will happen to fuel taxes.
Comparison with EV charges
Even if they choose to extend the freeze again, this would not make the cost of running a diesel any cheaper; it would simply prevent yet another 5p per litre being added to pumps in January.
By comparison, the new EV pay-per-mile charges set to be introduced from April 2027 will only charge drivers 3p per mile, with the cost of charging an EV at home usually ranging between 2p and 8p per mile, depending on tariff rate and EV range.
RAC response and petrol prices
The RAC's head of policy, Simon Williams, said £2 a litre was a threshold that '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. In a cruel twist, it's diesel vehicles, which were once considered the most cost-effective option for lengthy journeys, that are now burning a hole in people's pockets."
Petrol prices have also been on the rise, with a litre of unleaded now standing at 174.71p on average, around 42p more than at the start of the conflict. It means that the cost to fill an average-sized petrol car now stands at £96 overall.
Williams added: "For an average 45mpg diesel car, the cost works out at an extraordinary 20p per mile, so a driver covering 10,000 miles a year is now spending £2,020 on fuel a year. Households will be tightening the purse strings, while businesses may have no option but to pass these additional costs onto customers.
"The previous highest price of 199.09p seen in June 2022 is already becoming a distant memory as the conflict in the Middle East continues with no sign of a deal to reopen the critical oil and gas shipping route through the Strait of Hormuz."
The RAC said that drivers 'will be looking to the Government' to assist with the rising fuel bills by 'lowering fuel duty further or reducing VAT in October's budget'.
A Department for Energy Security and Net Zero spokesperson told the Express: "We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry."
