Diesel Prices Nearing All-Time High Amid Wider Fuel Price Volatility

Fuel prices are on the rise again, with diesel nearing an all-time high. According to the RAC, diesel has increased by nearly 12p per litre this month, with a 5p increase in just one week. The current average price of £194.90 is only 4p below the previous record set on June 25, 2022.

The RAC's head of policy, Simon Williams, warns that diesel prices could hit a new high as early as next week. Petrol prices have also risen, with an increase of over 10p in September alone and a current average price of £172.02 per litre. This means filling an average family car with diesel now costs £107.43, which is £29 more than on February 28.

The rise in fuel prices comes amid wider volatility, with global energy prices set to push inflation higher by the end of the year, according to the Bank of England's Monetary Policy Committee. The Consumer Price Index (CPI) inflation rate rose to 3.1 per cent last month, driven largely by the increase in petrol and diesel prices.