Diesel price don hit all-time high of 199.18p per litre, according to RAC motoring organisation, as war for Middle East continue to push cost of fuel up. Petrol price also still dey rise, with one litre currently costing 174.13p.
Over past seven months, Iran war don seriously disturb production and transportation of wholesale oil across region, and that one cause price of fuels wey dem make from oil to surge. RAC tok say diesel prices don enter uncharted territory and e serve as reminder of just how exposed UK be to events wey dey happen far away.
Cost of diesel don rise by 59p a litre, or just under 40%, since US–Israel conflict with Iran start at end of February. Previous record na 199.09p for June 2022 after Russia full-scale invasion of Ukraine. Di increase mean say to fill average family car with diesel now cost £110, £31 more than at start of conflict. Petrol prices now 41p per litre more than at start of conflict, but still well below 2022 peak.
RAC data dey based on average price of diesel for range of supermarkets, motorway service stations and independent retailers. Simon Williams, RAC head of policy, tok say record diesel prices spell pain not only at pumps for drivers, but for everybody wey dey buy goods or services wey rely on diesel lorries and vans. He tok say undoubtedly these increased costs go pass on to consumers. Williams tok say prices at pumps no go come down until there is sustained lower oil price over several weeks, not days.
Price of Brent crude, benchmark for global oil wey dem use make petrol, diesel and other fuel products, rose over weekend and now dey hover around $108 per barrel. Before US and Israel invade Iran, e dey trade around $73. Supplies of diesel internationally don heavily constrained by conflict for Middle East, which don restrict flow of both crude oil and refined diesel onto global markets. Russia, wey also be major producer, don implement export ban on diesel, following attacks on its refineries by Ukraine, and that further limit supply.
Diesel harder to refine than gasoline and, because haulage industry and agriculture dey use am, e very difficult to reduce demand. UK dey heavily reliant on imports. Although four refineries for UK dey make more than enough petrol to meet demand, dem no dey make enough diesel for country needs. There were 15.1 million diesel vehicles on UK roads at end of June, according to Department for Transport. That na drop from 15.7 million a year before. There were 9.8 million diesel cars, down year on year from 10.4 million.
Contingency plans wey government hold to help country cope with potential shortages of diesel fit return to table as prices at pump hit record high this weekend. RAC don predict say diesel go break im all-time price record for UK this weekend following continuation of conflict between US and Iran. Right now, prices dey average 199.05p per litre for diesel and 174.04p for petrol, as of Sunday, September 27, according to breakdown experts live price tracker. Simon Williams forecast say record of 199.09p go almost certainly be surpassed over weekend as Labour conference dey get under way, and average prices just 0.4p per litre away.
Reports from Sky News suggest UK had just 42 days of diesel left as of July, lowest among developed nations aside from Australia. Back in March, as conflict first break out, Labour Treasury minister refuse to rule out petrol rationing after crisis, and government plans wey Department for Energy Security & Net Zero set out under National Emergency Plan for Fuel show exactly how rationing go work if dem implement am. With diesel prices set to break records amid supply concerns, contingency plans by government fit theoretically be used for diesel in future. These plans include priority filling for emergency services and public transport and temporary speed limit reductions down to 50mph.
Louisa James, Political Correspondent at ITV Good Morning Britain, tok back in March say as you would expect government get emergency plans in place wey dem go activate if severe disruption happen. Those plans dey published online and dem include things like petrol rationing, giving emergency services and public transport priority for fuel. Also reportedly temporary 50mph speed limit to reduce demand for fuel. National Emergency Plan for Fuel tok say majority of potential fuel supply disruptions fit be addressed by measures to help industry maintain fuel supply; DESNZ go deploy these in co-ordination with industry and other government departments.
However, government get emergency powers under Energy Act 1976, wey e fit use control supply and demand of petroleum products. E good make we note say use of these emergency powers dey reserved for most severe disruptions. These measures go only activate if severe national fuel supply shortage happen. National Emergency Plan for Fuel document details when such measures fit activate: only when incident get potential to cause significant and widespread disruption to oil supply government go consider activating measures within NEP-F. Decision to activate measures in NEP-F fit only be taken at national level and DESNZ go lead am, as government department responsible for energy resilience. Local Resilience Fora and relevant organisations providing essential services expected to get robust business continuity plans in place wey take account of their own local and organisational context. Business continuity plans suppose align in principle to NEP-F but not rely on early activation of NEP-F measures. DESNZ spokesperson tok say we get diverse and resilient supply. We continue to engage with international partners and UK fuel industry.
Diesel often overlooked in middle of concerns about petrol prices and switching to electric vehicles. Dem dismiss am as associated with belching exhausts, confined to road haulage, not used by most consumers. E bin dey fashion for a while as cleaner replacement fuel for modern cars but that don since diminish. But diesel matter and hugely: na im dey power delivery of most goods in Britain, those giant trucks on motorways, journeys to and from ports. Na im farmers dey use, e be staple of countryside. Without am, we go lost. Or rather, with am and paying plenty more for am, we dey trouble.
Supplies of this global commodity, used all over world, dey struggle. Wars for Ukraine and Iran don lead to shortages. That difficulty of supply dey exacerbated by growing protectionism, wey see US, major supplier, threaten to stop exports. As result, diesel prices dey rocket, hitting all-time highs, and showing no sign of stopping. Timing no help, with farmers for northern hemisphere harvesting their crops and people building their fuel stocks for looming winter. Demand dey soar, as e usually dey, just when supply dey fall. World leaders dey put pressure on Donald Trump to relent and allow US share im diesel. So far, no sign of him capitulating. Instead, he insist say he go do wetin right for America. He want keep US prices down, to pacify im bedrock truck-driving supporters.
If he cut off supply, there go be knock-on effect on petrol and jet fuels, as US go reduce im oil refining capacity to compensate for absence of diesel exports. That go though play well for countries like UK, since US car-owners fit end up paying more for their gasoline, which be totem for any US president. For here, government go mindful of last time diesel come under such pressure, which be when lorry drivers go on strike for 2000; Alastair Campbell view am as worst domestic crisis to hit Tony Blair regime as NHS dey teeter on brink of unable to heat im hospitals. Britain especially vulnerable because we run just-in-time policy and keep only six weeks worth of reserves, compared with other nations like Japan, wey store three years worth. John Healey fit get to abandon planned fuel duty rise in im forthcoming Budget. But in absence of lasting peace for Gulf and Trump agreeing to export, there bound to be impact on British household bills.
