Diesel prices are being driven up by attempts to move from Russian-imported fuel
Diesel is now more expensive than before the government’s spring statement, despite 5p cut
Diesel prices have reached an all-time high of 180.29 pence per litre, according to data firm Experian Catalist.
The new record high is up from 179.9p recorded on the day of the government’s spring statement on 22 March, when chancellor Rishi Sunak announced a fuel duty cut of 5p per litre for one year.
Petrol prices, meanwhile, have risen by 3p per litre since the start of May to 166.65p, slightly below the 167.3p figure from 22 March.
Prices were originally driven to record highs due to Russia’s invasion of Ukraine. The RAC said prices are now rising again because of increased efforts to stop oil and fuel imports from Russia, which is squeezing supply.
“Sadly, despite the chancellor’s 5p-a-litre duty cut, the average price of a litre of diesel has hit a new record high at 180.29p,” said RAC fuel spokesperson Simon Williams. “Efforts to move away from importing Russian diesel have led to a tightening of supply and pushed up the price retailers pay for diesel.”
Prices could rise even further, having a significant impact on long-distance diesel drivers and those who use diesel vans and lorries for business, if the EU bans imports of Russian oil completely.
“While the wholesale price has eased in the last few days, this is likely to be temporary, especially if the EU agrees to ban imports of Russian oil,” said Williams.
“Unfortunately, drivers with diesel vehicles need to brace themselves for yet more pain at the pumps. Had Mr Sunak reduced VAT to 15% as we called on him to do instead of cutting duty by 5p, drivers of diesel vehicles would be around 2p a litre better off, or £1 for every full tank.
“As it is, drivers are still paying 27p VAT on petrol and 29p on diesel, which is just the same as before the spring statement.”