Diesel prices tipped for £2.30 hike
Diesel prices in the UK could rise to £2.30 a litre by the end of 2026 if supplies remain constrained due to the Iran conflict.
This is an increase of about 19% from current levels and would far exceed the previous high point of £1.99 recorded in 2022.
Consultancy firm Wood Mackenzie has reported that five countries have already imposed diesel restrictions, including France, and warned the global shortage could last well into 2027.
Commenting on these findings, Tom Preston, chief executive officer of Hippo Leasing, said: “Diesel is currently averaging 193.5p a litre in the UK and closing in on £2. The good news for anyone already in a diesel contract is that your monthly payment doesn’t change, whatever happens to fuel prices.
“What moves is what you spend filling up. To put a number on that, a diesel car doing an average 10,000 miles a year gets through roughly 909 litres of fuel annually. At today’s average diesel price, that’s about £1,760 a year in fuel. Even at a full £2 a litre, the same driver would spend around £1,820, a difference of under £60 a year. High-mileage van drivers doing 20,000 miles or more would see roughly double that.
“For anyone about to sign a new lease, that decision carries more weight than usual right now. Diesel is still the right choice for some high-mileage drivers covering serious motorway miles. But it’s worth running the fuel cost through to the end of a three or four-year contract rather than just comparing today’s monthly payments, because the price you’re seeing this week might not be the price you’re paying in year two or three.
“Business drivers have an added incentive to look again at leasing an electric vehicle, where Benefit-in-Kind tax sits at four per cent this year against up to 37% for diesel, something that doesn’t move with the oil price.”
