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US Diesel Prices Reach Record High Amid Iran Conflict
Confirmed
In Short: US diesel prices have hit a record high as the Iran conflict continues to impact fuel costs, according to reports.
US diesel prices have reached their highest level since the start of the Iran conflict, with the average cost of petrol also hitting a record high, according to the motoring group the RAC.
The price of fuel tends to follow the wholesale price of oil, which surged when the conflict began on February 28, with the price of a barrel of Brent crude remaining volatile.
While petrol prices have reached their highest since the conflict began, diesel remains below its peak of 191.54p a litre, which was reached on April 15.
Simon Williams, head of policy at the RAC, warned that with oil prices remaining elevated, drivers will almost certainly start paying noticeably more at the pumps in the coming weeks.
The price of petrol and diesel is also influenced by demand and refining capacity, with every $10 increase in the oil price pushing up pump prices by roughly 7p a litre, according to analysts.
What's confirmed
What's still developing
- In early July, after the framework deal was signed, prices fell back to near the $70 a barrel mark.
- Luke Bosdet, the head of policy at the AA, said the group had been surprised at the speed that prices had fallen and put it down to the scheme.
- In May, the then Prime Minister Sir Keir Starmer said a planned 5p increase in fuel duty due in September would be postponed until the end of December because of the conflict.
- Prices then nosedived when US and Iran agreed to a framework deal to end the conflict in June, but they have risen again since the collapse of peace talks.
- Generally speaking, news of further conflict drives the price up while hopes of an end to the war pushes the price down.