Diesel prices on UK forecourts remain near October's record high, averaging 197p a litre, according to the AA, which called the situation 'dismal'. Petrol has fallen 6p to 168p from its early October peak.
The average diesel price is down just 2p from the all-time high of £2 a litre, while petrol has dropped more sharply. Wholesale costs for unleaded have fallen from 77p to below 62p a litre over the past month. The AA said another 10p reduction could be on the cards for petrol as wholesale costs fell. Each 5p reduction at the pump would reduce the cost of filling a typical 55-litre tank by £2.75.
High fuel prices are putting significant strain on households and businesses. Christopher Waller, a US Federal Reserve governor, told a London conference this week that energy prices could remain 'elevated'. He attributed higher oil prices partly to increased tanker traffic through the Strait of Hormuz, noting that insurance costs and ship-to-ship transfers to guard against Iranian attacks were reportedly adding $20 to $30 a barrel. Waller also cited limited refining capacity, saying elevated diesel prices in the US were not expected to moderate as readily as crude oil prices in a more peaceful Middle East.
The AA’s pump-price spokesperson, Luke Bosdet, said that while it is already possible to find petrol below 160p in some areas, the picture is 'hit and miss'. He pointed to regional disparities, with London and the south-east lacking the bargain prices seen in northern England, Wales and Scotland. 'Some forecourts are still charging close to the peak prices of early October and, given how much wholesale costs have fallen since the middle of last month, that is unforgivable,' he said.
Bosdet said a further small reduction at the pump was possible, with wholesale costs down around 4p a litre since mid-October.
Analysis
Why This Matters
- Fuel prices directly affect household budgets and business costs across the UK.
- The disparity between petrol and diesel prices highlights different supply dynamics.
- Global factors (Hormuz tensions, refining capacity) continue to influence local costs.
Background
Diesel reached an all-time record of £2 a litre in October 2026, following a period of rising fuel costs. Petrol peaked at 174.7p in early October, its highest since August 2022. Despite a recent drop in oil prices, diesel has remained near that peak due to limited refining capacity and geopolitical risks in the Middle East.
Key Perspectives
AA (Luke Bosdet): Described the situation as 'dismal,' criticising forecourts for not passing on falling wholesale costs, especially for petrol, and pointing to regional price disparities.
Christopher Waller (US Federal Reserve governor): Said energy prices could remain 'elevated' due to higher costs from shipping through the Strait of Hormuz and limited refining capacity, with diesel prices in the US not moderating quickly.
What to Watch
- Potential further cuts to petrol prices as wholesale costs continue to fall.
- Whether diesel prices follow crude oil downwards or remain sticky due to refining constraints.
- Any change in the Middle East situation that could affect oil shipping costs.
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedDiesel prices remain near £2 a litre.World news | The Guardian: “The price of diesel on UK forecourts remains stubbornly close to October’s record high of £2”
- SupportedPetrol has fallen 6p a litre.World news | The Guardian: “petrol has fallen 6p to 168p from the peak of 174.7p in early October.”
- SupportedThe AA said a further 10p reduction in petrol could be possible.World news | The Guardian: “the AA said that another 10p reduction could be on the cards for petrol because wholesale costs were falling.”
- SupportedBargain petrol prices vary by region.World news | The Guardian: “London and the south-east stand out for not showing any fuel stations with the bargain petrol prices of northern England, Wales and even Scotland”
- SupportedThe average diesel price is 197p a litre, close to October’s record high.World news | The Guardian: “A litre costs an average of 197p, according to the AA”
- SupportedThe AA described the diesel-price situation as “dismal”.World news | The Guardian: “according to the AA, which described the situation as “dismal”.”
- SupportedPetrol fell to 168p from an early-October peak of 174.7p.World news | The Guardian: “petrol has fallen 6p to 168p from the peak of 174.7p in early October.”
- Partly supportedWholesale unleaded costs fell from 77p to below 62p a litre over the past month.World news | The Guardian: “The wholesale cost of unleaded fell from 77p a litre to 68p in the second half of October, and now sits below 62p.”
- SupportedWaller said energy prices could remain “elevated”.World news | The Guardian: “Christopher Waller, a US Federal Reserve governor, told a conference in London this week that energy prices could remain “elevated”.”
- SupportedWaller said insurance costs and ship-to-ship oil transfers were reportedly adding $20 to $30 a barrel to oil prices.World news | The Guardian: ““The insurance now needed for ships making this passage, and the ship-to-ship transfer of oil necessary to guard against Iranian attacks, are reportedly boosting oil prices by $20 to $30 a barrel.””
- SupportedBosdet said some forecourts charging close to early-October peak prices were “unforgivable”.World news | The Guardian: ““Some forecourts are still charging close to the peak prices of early October and, given how much wholesale costs have fallen since the middle of last month, that is unforgivable.””
- SupportedBosdet said petrol below 160p was already available in some areas, but it was “hit and miss”.World news | The Guardian: “Luke Bosdet, the AA’s spokesperson on pump prices, said it was “hit and miss” but already possible to find petrol below 160p in certain areas”