Monthly diesel fuel price in the United Kingdom (UK) 2017-2022

The average price of diesel fuel in the United Kingdom has increased noticeably. Prices reached a peak of 196.4 pence per liter in June 2022, up by nearly 48 percent compared to June 2021. In September 2022, diesel prices stood at 181.6 pence per liter. On average, Northern Ireland had the lowest diesel prices of UK regions.

Diesel cheapest at supermarket forecourts

Hypermarkets such as Sainsbury's, Asda, and Tesco had the greatest market share of motor fuel sold in 2021. This is unsurprising as the price of diesel was on average roughly three to seven pence cheaper at supermarket forecourts when compared with the UK average.

How volatile crude oil prices determine motor fuel costs

The price of crude oil is the most decisive factor influencing motor fuel costs. Among oil benchmarks, light crude oils such as Europe's Brent (which refers to oils sourced from the North Sea) are the most important for determining gasoline/petrol and diesel prices. When Brent prices fell in 2020 as a reflection of lower demand outlooks, so did motor fuel prices. This interconnection also explains why fuel prices rose so dramatically in 2022, as the Russia-Ukraine war had traders anticipate significant oil supply constraints.