Diesel has hit the highest price in UK history: an average of 199.18 pence per litre at the pumps on Monday, the RAC said.

The figure beats the previous record of 199.09p set in June 2022, after Russia invaded Ukraine. Many drivers are already paying more than £2 a litre.

The RAC said filling an average family car now costs almost £110, £31 more than at the start of the US-Iran conflict on February 28, when diesel stood at 142.38p.

RAC head of policy Simon Williams called it ‘a financial blow’ for households and businesses. He warned higher costs would be passed on to consumers through diesel lorries and vans.

Petrol is also rising. Unleaded averages 174.13p a litre, 41p more than at the start of the conflict, taking a full tank to nearly £96.

The RAC pointed to the US-Iran conflict and Ukrainian strikes on Russian refineries. It said only a sustained fall in oil prices over several weeks would cut pump prices.

Why it matters: fuel costs feed straight into inflation, and reversing the fuel duty cut would add another 5p a litre in the spring.