Diesel has not been this close to its record since the summer of 2022. The UK average now stands at 195.32p a litre, according to RAC Fuel Watch, with petrol at 172.02p. Both are more than 37% higher than when the US–Iran conflict began at the end of February, and both are at their highest since August 2022.
The RAC's head of policy has said diesel is likely to set a new all-time high this week. The previous peak was 199.05p on 25 June 2022, in the months after Russia's invasion of Ukraine. At the current rate of climb — diesel has risen by around 9p since the start of September — the remaining 3.73p could go within days.
Live on PetrolPrices.co.uk right now
- Average diesel across the stations we track: 196.8p — 2.3p below the record
- Average petrol (E10): 172.8p
- Forecourts already charging £2 or more for diesel: 846
- Cheapest diesel in the UK: 107.9p, dearest: 299.9p
Updated 21 Sep 2026, 23:52 from the government Fuel Finder feed. Refreshes every 15 minutes.
What the Lib Dems are proposing
Speaking on the BBC's Sunday with Laura Kuenssberg yesterday, Liberal Democrat leader Sir Ed Davey called on Chancellor John Healey to cut fuel duty by 10p a litre until Christmas. He also wants the rise scheduled for January 2027 scrapped — a position the Conservatives and Reform UK already hold.
Davey put the cost of the three-month cut at about £2bn and argued it would pay for itself through the extra money the Treasury is already collecting from the energy profits levy, gas taxes, VAT and fuel duty while energy prices are high. It is not the first time he has made the call: he asked for the same 10p cut in April, when Labour said the plan was unfunded.
Why 10p off duty means 12p off the pump
VAT at 20% is charged on top of fuel duty, so any change to duty is multiplied by 1.2 at the pump. A 10p cut in duty removes 10p plus the 2p of VAT charged on it. That is where the 12p figure comes from — provided retailers pass it on in full.
| Fuel | Price today | With 12p off | 55-litre tank today | 55-litre tank after cut |
|---|---|---|---|---|
| Diesel | 195.32p | 183.32p | £107.43 | £100.83 |
| Petrol | 172.02p | 160.02p | £94.61 | £88.01 |
On a typical 55-litre tank the saving is £6.60, whichever fuel you use. For a driver who fills up once a week, that works out at about £79 across the 12 weeks to Christmas. For context, the current duty rate is 52.95p a litre; a 10p cut would take it to 42.95p.
A cut is only worth what retailers pass on
When the 5p cut arrived in March 2022, there were concerns that some retailers did not pass it on in full. The CMA has since found that retailers can be slow to pass savings on to drivers — we covered this in CMA: retailers slow to pass on savings. With every station now reporting its prices to the government Fuel Finder scheme, any cut would be far easier to track at forecourt level than it was in 2022.
What the government says
The Treasury has not taken up the proposal. A spokesperson said decisions on tax are set out by the Chancellor at fiscal events and that it does not routinely comment on proposals. Labour Party chair Bridget Phillipson told the same programme that Healey would be open to suggestions before the Budget, but that the government had already acted on fuel duty.
That action is the extension of the 5p cut to 31 December 2026, which scrapped the rise drivers had expected on 1 September — see September fuel duty rise cancelled. Treasury insiders have told reporters that no decision has been taken on the January increase, and that keeping the 5p cut alone costs around £2.4bn a year at a time when the Chancellor is under pressure to balance the books.
The arguments on each side
For a cut: supporters argue that pump prices are driven by a conflict drivers have no control over, that diesel costs feed straight into delivery charges and grocery prices, and that the Treasury collects more VAT when fuel is expensive, so part of the cost is recovered. Hauliers say fuel surcharges are being squeezed out as work dries up, leaving them to absorb the rise.
Against a cut: critics point out that a duty cut costs billions at a time of rising government borrowing costs, benefits higher-mileage and wealthier drivers most, and may not reach the pump in full. Labour's line in April was that an unfunded tax cut risks repeating the market reaction to the 2022 mini-Budget.
The dates that matter
This week
Diesel expected to pass the 199.05p record. Davey sets out his party's plans in his conference speech on Tuesday.
Wednesday 28 October 2026
John Healey's first Budget. Any change to fuel duty — a cut, a freeze, or confirmation of January's rise — is expected here. Background in Budget 28 October: the fuel duty decision.
31 December 2026
The current 5p cut is due to end.
January 2027
A 3p rise is scheduled — the first duty increase in 15 years unless the Budget changes it.
Why diesel is rising faster than petrol
The gap between the two fuels is now more than 23p a litre. Diesel is more exposed to the disruption in the Middle East: damaged refining capacity and shipping problems through the Strait of Hormuz hit diesel and jet fuel supplies first, and Europe relies heavily on imported diesel. Petrol, at 172.02p, is still almost 20p below its own record of 191.53p from July 2022. We explain the structural reasons in why diesel costs more than petrol, and track this month's moves in petrol hits new crisis high as diesel closes in on 192p.
What the record would mean on a tank
At the 199.05p record, a 55-litre diesel fill-up costs £109.48. At £2 a litre it is £110.00 — £31.69 more than the 142.38p diesel averaged at the end of February, before the conflict began.
What you can do now
No duty change can happen before the Budget, so the biggest saving available this week is where you fill up. The national average hides a wide spread between the cheapest and most expensive forecourts, often within the same town — see why petrol prices differ in the same town.
Three quick ways to pay less
- Check prices before you set off. We cover over 8,000 stations from the government's Fuel Finder feed, updated every 15 minutes.
- Don't queue at the first forecourt you see because of headlines. The day of the week is worth pennies; the choice of forecourt is worth far more — as we found in told to fill up before Thursday?
- Supermarket forecourts are usually below the national average. Use the fuel price map to see them side by side.
How much of your fuel is tax?
Duty and VAT together make up a large share of every litre. At 195.32p, the VAT alone on a litre of diesel is about 32.6p, on top of the 52.95p duty. Our breakdown of how much fuel is taxed in the UK shows how the split changes as prices rise.
National averages are from RAC Fuel Watch as of 21 September 2026. Tank costs are based on a 55-litre tank. Live figures come from the government Fuel Finder feed and are refreshed every 15 minutes.