The RAC has warned drivers that diesel prices are set to reach a record high this weekend, as the ongoing conflict between the US and Iran continues to push up fuel costs. According to the breakdown experts' live price tracker, the average price of diesel was 199.05p per litre and petrol was 174.04p as of Sunday, September 27.
Record prices and financial impact
RAC head of policy Simon Williams said: “The average price of a litre of diesel has now reached the highest level in UK history, in what will be a financial blow to households and businesses that use their vehicles regularly.
“The cost of filling up an average family car is now almost £110, £31 more than it was at the start of the US-Iran conflict. This spells pain not only at the pumps for drivers, but for everyone who buys goods or services that rely on diesel lorries and vans; undoubtedly these increased costs will be passed on to consumers.”
Williams added: “Only a sustained lower oil price – over several weeks, not days – will lead to cheaper prices at the pumps.”
Supply concerns and government plans
Reports from Sky News, cited by the Express, suggest the UK had just 42 days of diesel left as of July, the lowest among developed nations aside from Australia. In March, when the conflict first broke out, a Labour Treasury minister refused to rule out petrol rationing.
The Department for Energy Security & Net Zero's National Emergency Plan for Fuel (NEP-F) outlines how rationing would work in practice, including priority filling for emergency services and public transport, and temporary speed limit reductions down to 50mph.
How rationing would be activated
Louisa James, political correspondent at ITV’s Good Morning Britain, said in March: “As you would expect the government has emergency plans in place which will be activated in the event of a severe disruption. Those are published online and they include things like petrol rationing, giving emergency services and public transport priority for fuel. Also reportedly a temporary 50mph speed limit to reduce demand for fuel.”
The NEP-F states: “The majority of potential fuel supply disruptions can be addressed by measures to help industry maintain fuel supply; these would be deployed by DESNZ in co-ordination with industry and other government departments.
“However, the government does have emergency powers under the Energy Act 1976, which it can use to control supply and demand of petroleum products. It should be noted that use of these emergency powers is reserved for the most severe of disruptions. These measures would only be activated in the event of a severe national fuel supply shortage.”
The plan adds: “Only when an incident has the potential to cause significant and widespread disruption to oil supply will government consider activating measures within the NEP-F. The decision to activate the measures in the NEP-F can only be taken at a national level and would be led by DESNZ, as the government department responsible for energy resilience.”
A DESNZ spokesperson said: “We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry.”
