Updated

Updated · bbc.co.uk · Sep 28

UK Diesel Hits Record 199.18p a Litre as Middle East War Drives Fuel Costs Higher

Updated

Updated · bbc.co.uk · Sep 28

UK Diesel Hits Record 199.18p a Litre as Middle East War Drives Fuel Costs Higher

Q: With UK diesel hitting record highs from overseas conflicts, will everyday grocery bills skyrocket as haulage costs are passed to consumers?

Grocery bills are likely to rise, but not “skyrocket” across the board unless diesel stays near record levels for a sustained period and retailers pass through the full cost. The link from pump prices to supermarket shelves is real. Diesel powers lorries, vans, farm machinery and refrigerated transport, and the RAC is right that higher haulage costs usually feed into goods and services. The UK is especially exposed because it imports roughly 54% to 55% of its road diesel, while global refined diesel supply is tight because of Middle East disruption, pressure on the Strait of Hormuz and damage to refineries elsewhere. Analysts say a $10 rise in oil can add about 7p a litre at the pump. But fuel is only one part of a grocery bill. Industry evidence suggests a 10% rise in fuel prices tends to add about 2% to 4% to total logistics costs, not to final retail prices. Food inflation also moves with a lag, sometimes many months, and supermarket competition can blunt or delay the pass-through. Recent UK inflation data showed food price pressures had not yet surged in line with fuel, even as transport costs rose. The biggest risks are to goods that are bulky, low-margin, heavily transported or chilled, such as fresh produce, meat, dairy and delivered groceries. If diesel stays near or above £2 a litre for weeks, households should expect more upward pressure at the till. But a sharp, immediate jump in every grocery category is not the most likely outcome unless the energy shock deepens.

3 articles · Updated · bbc.co.uk · Sep 28

Diesel reached a record 199.18p per litre in the UK, topping the previous 199.09p peak from June 2022, while petrol rose to 174.13p.
Seven months of war involving Iran have disrupted regional oil production and transport, lifting wholesale oil costs and pushing pump prices into what RAC called "uncharted territory."
£110 is now the cost of filling an average family diesel car—£31 more than at the start of the conflict—and RAC warned higher diesel costs will feed through to goods and services moved by lorries and vans.
RAC said prices are unlikely to ease until oil falls sustainably for several weeks, underscoring how exposed the UK remains to distant geopolitical shocks.

Sources

bbc.co.uk1h ago

UK Diesel Price Hits All-Time High Amid Middle East Conflict

LBC1h ago

Price of diesel hits all-time high as conflict in Middle East rages on | LBC

Yahoo! Voices23h ago

Diesel prices breaking the bank | Cartoon

6 Sources

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