Diesel price 'to hit all-time record within a week' as Middle East chaos causes more misery at the pumps

See more Daily Mail on Google - save us as a Preferred Source Published: 08:47 EDT, 16 September 2026 | Updated: 09:02 EDT, 16 September 2026 The price of diesel could hit an all-time record within the next week as Middle East chaos causes more misery.The RAC has warned that drivers are now only paying 5p per litre less than the 199.05p peak recorded in June 2022.And that level will be topped in the coming days if the current rate of increase is maintained. The bleak picture sparked fresh calls for Chancellor John Healey to act to curb costs for motorists in the Budget next month. RAC head of policy Simon Williams said: 'The average price of both petrol and diesel have edged up yet again overnight, with unleaded hitting 171.27p a litre and diesel 193.85p, reaching new Iran war highs. 'Both fuels have surged by 10p since just the start of this month, putting acute pressure on households. The RAC has warned that drivers are now only paying 5p per litre less than the 199.05p peak recorded in June 2022 (file picture)'But it's diesel prices that we're watching particularly closely – the average diesel price is now just 5p off 2022's all-time high of 199p, a watershed that looks increasingly likely to be breached within the next week if prices keep rising this quickly.'Mr Williams said the costs would have a 'particularly detrimental effect on businesses big and small that rely on diesel-powered vans and lorries'. 'These increased costs could unfortunately be passed on to consumers in order to balance the books,' he said.'Together with today's ONS figures that show an uptick in the headline rate of inflation – with fuel prices once again largely responsible – the pressure on the Government to act to support households in the Budget that is exactly six weeks away is only going to intensify. 'Whether that's abandoning plans to raise fuel duty, cutting the tax or even reducing VAT on fuel, there are levers that can be pulled and nothing should be off the table for the Chancellor next month.'Official figures released this morning showed headline CPI inflation was 3.1 per cent in the year to August, up from 2.9 per cent the previous month.The bump was in line with expectations and largely due to mounting transport costs. But economists have been warning that could be only the start. Oil costs have been running at eye-watering levels, with Brent Crude at $108 a barrel this morning. Drivers are already feeling the pinch at the pumps, where diesel is at a four-year high. There are estimates that energy bills could be set to rise by a quarter in January, while the Government is struggling to find ways of balancing the books at the Budget next month. Some analysts believe CPI will now hit 4 per cent next year, with markets pricing in multiple interest rate increases as the Bank of England fights to prevent a spiral.The Monetary Policy Committee - which targets 2 per cent inflation - will make its latest decision on rates tomorrow, although it is widely predicted to hold them at 3.75 per cent this time.