Diesel prices are likely to hit all-time high next week, according to the RAC, as businesses warn of a knock-on effect on prices due to higher costs for the movement of goods.
The RAC, a British automative services company, said that the average price of diesel is now at 195.32p per litre - which is only 4p off the record of 199.09p set in June 2022.
Prices of fuel are rising again due to the collapse of the US-Iran ceasefire in July, which sparked a new surge in the cost of oil.
According to the RAC, the cost of a full tank of petrol for a 55-litre family car is now £94.61, which is £21.55 higher than at the end of February when the Iran war began, and the cost to fill up with diesel is now £107.43, which is £29 higher than the end of February. Simon Williams, Head of Policy at the RAC, said that this price increase means that the average household which buys fuel twice a month is having to find an £43 extra for petrol and £58 for diesel compared to the start of the conflict.
The higher price of fuel is also likely to have a knock-on-effect on the price consumers pay for products in stores. It increases shipping, trucking, and delivery expenses, which businesses often pass down in the price shoppers pay for groceries and retail goods.
Rhys Fildes, a member of Haulage Exchange, said that haulage rates are rising far more slowly than the cost of running a truck, and many hauliers have been absorbing that gap on margins of around 2% in this industry – which is unsustainable for the longevity of their businesses.
Peter Scott, a director of recycling business Scott Bros, told the Mirror that most products that the public purchase have spent time on the back of a lorry or van, and if it costs more to move goods around the country, those costs will soon hit the wider economy.