UK diesel price hits £2 a litre as US calls for Europe to release more stocks

The average price of diesel has risen above £2 a litre in the UK for the first time, according to the RAC motoring body, as the fallout from the Iran war continues to push up the cost of fuel.

Diesel has now hit an average of 200.01p a litre, the RAC said, and petrol prices are also still rising, reaching 174.71p a litre on average.

The motoring group said price rises were "showing no signs of slowing, heaping more misery onto motorists".

The US has put increasing pressure on European countries to release more diesel stocks, to help lower diesel prices worldwide, with President Trump threatening to ban US exports of the fuel.

Banning exports would mean more US diesel for the domestic market, which could ease prices for American motorists ahead of the midterm elections in November.

However, it would be likely to push up prices elsewhere, including in the UK and the EU.

US President Donald Trump said he was considering a ban, and backed his Treasury Secretary Scott Bessent who has urged European countries to release diesel supplies "immediately", arguing that US farmers, truckers, and businesses "should not be left carrying the burden" as prices soar.

On Friday, the EU said it "fully rejects" the US threat to ban diesel exports if Europe fails to release more of its reserves onto the market.

"It would undermine our trust in the United States as a reliable partner," an EU spokesperson said.

EU countries agreed in March to release some stocks as part of an internationally co-ordinated response to the Iran war. With prospects for the war and fuel supplies still uncertain, not all EU countries have met those commitments.

UK government ministers said they were working with both the US and the EU.

"We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry," a government spokesperson said.

The government has stressed that there is no cause for concern about potential diesel shortages, though prices are expected to rise further.

Over half of the diesel bought in the UK is imported. Less than a third of imports are from the US, amounting to around 17% of the total UK supply.

Over the past seven months, the Iran war has severely disrupted the production and transportation of wholesale oil and refined products from the region, causing prices to surge worldwide.

Ukrainian attacks on Russian refiners have further constrained supplies of diesel on the world market. China has also restricted exports of refined fuels.

High diesel prices affect some drivers directly, but can have a wider knock-on effect by pushing up transport and delivery costs and making food production more expensive.

The cost of filling an average family car with diesel is now £110, almost £32 more than it was at the start of the US-Iran war, the RAC's Simon Williams said.

"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," he added.

The cost of filling a typical petrol car has risen to £96.09, the RAC said, up £23.03 since February.