Diesel in the UK rises to a record 199.18 pence per litre — OilPrice

In the United Kingdom, the average price of diesel fuel has reached a record 199.18 pence per litre, the RAC motoring organisation reported. This exceeded the previous record of 199.09 pence per litre, set in June 2022.

As OilPrice reports, the RAC linked the rise in diesel prices to the country’s vulnerability to events beyond its borders. Record fuel prices have become an additional source of pressure on the British economy ahead of the next budget.

Rising oil prices

Amid renewed uncertainty surrounding the Strait of Hormuz, the price of Brent crude rose by 4% on Monday and exceeded $96 per barrel. The outlet linked the market reaction to Donald Trump’s rejection of Iran’s proposal to reopen the strait.

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XTB research director Kathleen Brooks said that fuel costs in the UK had entered uncharted territory. In her view, this heightens concerns about the consequences for the economy and a possible response from the Bank of England.

Government bond market

During Chancellor John Healey’s speech at the Labour Party conference, the yield on two-year UK government bonds rose by six basis points to 4.75%. The yield on 10-year bonds added five basis points, reaching 5.4% and approaching the 19-year high of 5.41% recorded earlier this month.

Healey said that the government intends to balance public finances while maintaining a reserve for uncertainty, controlling borrowing to reduce inflation, and easing long-term financial pressure.