UK diesel price tops £2 a litre as G7 countries agree to release 100 million barrels of oil

The average price of diesel has risen above £2 a litre in the UK for the first time, according to the RAC motoring group, as G7 nations agreed to release 100 million barrels of oil to head off further increases.

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 G7 group of advanced nations, including the US, said the move would stabilise supplies and shield households from further price spikes at a time of "unprecedented volatility in oil markets".

The G7 also agreed member countries would not impose export restrictions on each other, after President Donald Trump threatened to ban shipments of US diesel overseas.

The move would have pushed up global prices of the fuel, but helped ease pressure on US consumers ahead of November's midterm elections.

He had said this week the ban would go ahead if European countries did not put more of their own reserves on the market.

But the G7 on Friday said its agreement will avoid moves that "could exacerbate market tensions".

"We will implement our commitments with a coordinated release through the International Energy Agency (IEA) of 100 million barrels to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days by G7 members and partners," the group said in a joint statement.

The G7 counts the US, UK, Canada, Japan, Germany, Italy and France as members, with the EU also represented at its meetings.

European countries had pushed back against US threats to turn off American diesel, against a backdrop of the US-led war in the Middle East and reduced supplies from Russia and China.

The threatened ban was averted as diesel prices in the UK hit an average of 200.01p a litre, motoring body the RAC said, while petrol prices are also rising, reaching 174.71p a litre on average.

UK businesses and consumers already feel like they are bearing the brunt of higher prices, with many saying it makes their lives increasingly difficult.

Even people who do not drive a diesel vehicle themselves face a knock-on effect from rising delivery costs or the higher cost of producing food.

Mark Means, who has farmed in Norfolk for over 50 years, said he was "frightened to death" by the rising costs of diesel.

He has spent £50,000 on new diesel tanks to try to ensure he has enough supply to harvest and plants crops, but the rising price is cutting into his margins.

"It feels like it's an assault," he said.

Steven Tompkins in Leicester said rising fuel prices mean driving instructors like him are having to increase their prices.

"When you've got kids who are working part time, they're on a tight budget and we're telling them that the prices are going to have to go up because of the fuel, it's hurting," he said.

UK government ministers strove to reassure diesel users earlier on Friday.

"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.

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 led to further constraints on supplies of diesel to the world market. China has also restricted exports of refined fuels.

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.