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

British motorists are facing record pump costs after the nationwide average price of diesel crossed £2 a litre for the first time, according to data from the RAC.

Fuel figures tracked by the motoring organisation show diesel reaching an average of 200.01p per litre, while unleaded petrol has climbed to 174.71p per litre. The RAC warned that the price surge continues unabated, warning that the climb will severely impact high-mileage households, delivery firms, transport fleets, and small business owners. Replenishing an average diesel family vehicle now costs £110, an increase of roughly £32 since the beginning of the Iran conflict. A standard petrol fill-up has climbed to £96.09, up over £23 since February.

The sharp increases follow months of market instability caused by the war involving Iran, which has heavily disrupted crude extraction and shipping. International supplies have experienced additional strain from Ukrainian strikes against Russian oil refineries alongside export limits introduced by China. More than half of the diesel consumed within the UK relies on foreign imports, with roughly 17% of overall supply arriving from the United States.

The market shock has triggered diplomatic friction across the Atlantic. Leaders from the G7 are holding virtual talks to examine emergency fuel reserves, following calls from Washington demanding that European allies immediately tap strategic petroleum inventories. US President Donald Trump has warned he may halt American fuel exports to protect domestic drivers and businesses from escalating expenses ahead of upcoming midterm elections. US Treasury Secretary Scott Bessent asserted that American consumers should not bear the financial fallout alone.

An export embargo by the United States would keep additional diesel in the American domestic market but threatens to tighten availability and escalate prices across Europe and the UK. The European Union responded by dismissing the American threat, stating that halting shipments would damage transatlantic trust. Although EU member states pledged to coordinate emergency stock drawdowns earlier this year, several nations have yet to fulfil those quotas amid ongoing supply uncertainty.

Representing the UK at the G7 discussions is Foreign Secretary Ed Miliband, stepping in while Prime Minister Andy Burnham attends his father's funeral. British officials maintain that the country's import framework remains diversified and stable, stating there is no immediate threat of physical shortages, even as wholesale price pressures persist.

The rapid cost growth is creating ripple effects beyond forecourts. Independent sectors including agriculture and local services report shrinking margins due to high running expenses. Businesses warn that elevated distribution and operational outlays will inevitably filter down to higher retail prices for food, transit, and consumer goods.