Fuel hits highest price since Iran war began, diesel to hit “watershed” in coming week – RAC

Petrol and diesel prices have reached a new Iran war high, with unleaded hitting 171.27p a litre and diesel 193.85p, according to RAC analysis.

Both fuels surged by 10p since just the start of this month, which RAC said puts acute pressure on households.

Simon Williams, head of policy at RAC, said: “But it’s diesel prices that we’re watching particularly closely – the average diesel price is now just 5p off 2022’s all-time high of 199p, a watershed that looks increasingly likely to be breached within the next week if prices keep rising this quickly.

“This is something that’s likely to have a particularly detrimental effect on businesses big and small that rely on diesel-powered vans and lorries.

“These increased costs could unfortunately be passed on to consumers in order to balance the books.”

Williams explained that rising fuel prices played a large part in the rise in inflation reported by the ONS today.

He added that there is now even more pressure on the Government to support households in the upcoming Autumn Budget

Williams said: “Whether that’s abandoning plans to raise fuel duty, cutting the tax or even reducing VAT on fuel, there are levers that can be pulled and nothing should be off the table for the Chancellor next month.”