For a few uncomfortable days this autumn, diesel did something it had never done before in the UK: it went above £2 a litre. This week there’s some relief, with prices easing back to an average of 199.90p a litre, while petrol sits at 174.79p, according to the RAC. It’s good news, but anyone who’s filled up recently will know it’s a fairly small silver lining on a pretty grim cloud.
Why prices have come down
The dip traces back to international oil markets rather than anything happening on the forecourt itself. Brent crude slipped to around $97 a barrel after G7 leaders agreed to release more than 100 million barrels from stockpiled reserves, a move that followed pressure from the US to bring diesel exports back up and ease prices for American drivers too. The G7 says a “frontloaded substantial diesel release” should reach the market within about 20 days, though the full effect will take closer to four months to filter through.
Why nobody’s celebrating just yet
The RAC’s Rod Dennis has welcomed the fall but was careful not to overstate it, saying drivers are still “a long way from being out of the woods,” with 2026 on track to be the second most expensive year on record at the pumps. Compared with prices before the Iran war, petrol is still 42p a litre higher and diesel 57p higher, which adds up to roughly £23 and £31 extra on a full 55-litre tank. A Skoda Superb with a 66-litre diesel tank, for example, cost £93.97 to fill in February this year. By early October, the same fill-up cost £131.93.
The AA, meanwhile, wants the government to go further. President Edmund King is calling for an extra 5p cut on top of the existing temporary 5p fuel duty reduction, arguing it would knock around £3.30 off a typical fill-up and could be funded by the £374 million in extra VAT the Treasury has collected this year as higher prices pushed up spending on fuel and maintenance.
What the Budget might bring
All eyes are now on the Budget on 28 October. The planned unwinding of the temporary fuel duty cut has already been pushed back to next year, and Chancellor John Healey has said he’s “acutely conscious” of how hard fuel costs are hitting households, hinting at more detail to come on cost of living support. Nothing is confirmed yet, so it’s a case of wait and see.
Interestingly, the Competition and Markets Authority looked into whether retailers were profiteering and found no evidence of that, though it did flag “passive” pricing, where weak competition means forecourts are slow to pass on falls in oil prices to drivers.
The bigger picture
It’s probably no coincidence that diesel’s rough year has coincided with a shift away from it. Diesel cars made up just 4% of new registrations in 2026, and enquiries for diesel models on comparison sites have dropped by a third since the spring, while electric car enquiries are up by more than a quarter. Fuel costs alone won’t make that decision for everyone, but they’re clearly part of the conversation.
Whatever you drive, it’s worth keeping an eye on both pump prices and the Budget over the next couple of weeks. If rising running costs have you wondering whether it’s time to look at your options, including whether an EV or hybrid might suit your mileage better, that’s a conversation we’re happy to have, whenever you’re ready for it.