UK diesel prices are highest in Europe for ‘no good reason’, experts say

UK drivers are now facing the steepest diesel costs in Europe, according to a new study.

The RAC, which conducted the analysis, has stated there is “no good reason” for British fuel retailers to avoid reducing prices at the pumps.

Research shows that the average cost of diesel at UK petrol stations is 155p per litre. This figure is 5p higher than in Ireland and Belgium, where diesel ranks as the second priciest in Europe at 150p per litre.

Despite the 5p per litre reduction in fuel duty implemented in spring 2022, the UK still shares the highest diesel duty rate in Europe with Italy at 52.95p per litre, yet Italian drivers pay 7p less at the pumps, with an average price of 148p per litre.

In France, where the duty rate is only marginally lower by 1p per litre compared to the UK, the average diesel price is significantly cheaper by 9p at 146p per litre. The data for this analysis was sourced from the European Commission and the UK’s Competition and Markets Authority.

Official statistics indicate that diesel vehicles constitute approximately one-third of all cars on UK roads totalling 11.4 million. Additionally, the majority of commercial vehicles, including vans and lorries, run on diesel.

Simon Williams, RAC fuel spokesman, labelled the UK’s position as having the most expensive diesel in Europe as “a very dubious honour”.

He commented: “The average retailer margin on diesel that’s the difference between the delivered wholesale price and the retail price before VAT is 18p. That’s a shocking 10p more than the long-term average.

“The average price of a litre of diesel should really be down to around the 145p level if retailers were charging fairer prices. The margin on petrol is also, in our view, unreasonably high at 13p.

“We can see no good reason why retailers in Britain aren’t cutting their prices at the pumps. It’s important to note that in Northern Ireland, where there is greater competition for fuel in the absence of supermarket dominance, the average price of diesel is just 144.9p 10p less than the UK average, and petrol is 6p cheaper at 142.4p.”

The UK’s petrol is only the 11th most expensive in Europe at an average of 149p per litre. Europe’s most expensive petrol is in Denmark, where drivers are typically charged 175p per litre.

Independent fuel retailers in the UK have said they are facing various cost increases, such as business rates, energy bills and wages.

Mr Williams concluded: “There is cause for hope for fairer fuel prices in the future as the Digital Markets, Competition and Consumers Act became law on Friday, giving new powers to the Competition and Markets Authority to closely monitor road fuel prices and report any sign of malpractice to the Government.”

Join the Daily Record’s WhatsApp community here and get the latest news sent straight to your messages.