UK Diesel Prices Hit Record High as Energy Costs Fuel Mortgage Market Woes

Diesel prices have reached an all-time high of £2 per litre in the UK, causing significant financial burdens for motorists. The average price of diesel has risen by 40.5% since February, when disruptions to oil and gas shipments through the Strait of Hormuz led to a surge in fuel costs.

Filling up a family car now costs an average of £110, nearly £32 more than before the conflict began. Petrol prices have also increased, averaging 174.71p per litre and adding £23 to a full tank.

Simon Williams, head of policy at the RAC, warned that this is a 'pump price threshold that no-one wanted to cross.' The rising energy costs are having far-reaching effects on the economy, particularly in the mortgage market.

The Bank of England's Monetary Policy Committee meets on November 5th, with base rate currently sitting at 3.75% and Consumer Prices Index inflation at 3.1%. Brokers are adjusting their conversations with clients to reflect the sustained energy-driven inflation.