White van man ‘bleeding cash’ as diesel price disparity hits new high

The price difference between diesel and petrol has reached the highest level since at least 2003 as the Iran oil crisis deepens, new figures show.

Latest data from motoring services company the RAC shows the average price of a litre of diesel at UK forecourts rose to 179.9p on Sunday, 28.5p more than petrol (151.4p).

UK oil refineries are more geared towards producing petrol than diesel, so the country’s supply of the latter is more reliant on imports.

Oil prices – which have a significant effect on the cost of wholesale fuel – have soared in response to Iran’s stranglehold on tankers passing through the Strait of Hormuz, sparking rising pump prices.

Motoring research charity the RAC Foundation warned the price disparity between diesel and petrol is at the highest level since at least 2003, and possibly ever.

Latest DVLA figures show there were 16.2 million diesel vehicles licensed in the UK as of the end of September last year.

This included the vast majority of light goods vehicles, such as vans.

Steve Gooding, director of the RAC Foundation, said: “Diesel is the lifeblood of millions of small businesses, but today white van man is bleeding cash just to stay on the road.

“Whether you drive or not, soaring diesel prices will take money out of your pocket, either at the pump or in the bills you pay for everything from calling out the plumber to getting a home delivery.

“If oil prices remain at this level the impact on the forecourt could be felt for weeks, if not months.

“That’s bad news for everyone, not just drivers of the UK’s 4.6 million diesel vans, the majority of which will be used for work purposes.”

There are mounting calls for the Government to abandon the increase in fuel duty planned for September because of the rise in pump prices.

Chancellor Rachel Reeves announced in her November 2025 budget that the 5p-per-litre cut in fuel duty introduced by the Conservative government in March 2022 would only be extended until the end of August 2026, with rates then gradually returning to March 2022 levels over the next five years.

AA president Edmund King said: “The extra hike in diesel prices disproportionally hits businesses, deliveries, the service industry and the self-employed.

“The Government must be concerned about sky-high diesel prices as it is these costs that fuel inflation.

“Government can consider what they do with fuel duty in September but frankly that is five months away and arguably industry needs help now.

“With higher pump prices, the Government has been gaining more in VAT, so there is some ‘free’ money in the system that could be used to help drivers out.”

Downing Street has insisted forecourts are “well-stocked nationally” amid reports of pumps running dry in some locations.

Asked whether the Government was planning for any shortages, the Prime Minister’s spokesman replied: “We’ll always plan for all eventualities.”

He added: “To be very clear, as the PM (Sir Keir Starmer) has said and as the Government have said, and indeed industry have said, fuel production and imports are continuing.

“The UK benefits from diverse and resilient supply.

“Petrol stations in the UK are well-stocked nationally and any suggestion otherwise is incorrect.”