Diesel closes in on £2-a-litre record as calls grow for emergency fuel duty cut to ease cost of living crisis

From the Newshound archive · first published 21 September 2026.

Diesel is racing towards £2 a litre and could surpass its all-time high of 199.09p this week, the RAC has warned, after prices surged nearly 12p in September alone driven by the US-Iran conflict. Filling a family diesel car now costs £107.43 — £29 more than in February. The Bank of England warns elevated energy prices will push inflation higher before the year ends.

Sir Ed Davey is urging Chancellor John Healey to cut fuel duty by 10p a litre until Christmas, which he says would deliver a 12p reduction at the pump at a cost of roughly £2bn.

Labour already faces pressure to scrap a planned triple fuel duty rise — including a 3p hike on 1 January 2027 — with campaigners warning the increases will 'cripple' family finances this winter.

Some 236 UK forecourts are already selling diesel above £2 a litre, with a further 633 charging 199.9p — together representing around 10 per cent of the UK network.