British motorists are facing higher costs at the pumps after the average retail price of diesel climbed to a record £2 per litre, industry figures show.
The rise represents a 40.5% increase since late February, a period that has seen supply disruption of crude oil and refined products from the Gulf. The squeeze on diesel supplies has added to inflationary pressures across the economy and left some drivers struggling; consumer complaints have included remarks such as "half my day's pay goes to filling up my car."
France has proposed that European Union member states and the International Energy Agency coordinate the release of oil and diesel from strategic reserves in an attempt to bolster supplies and alleviate price spikes. The French proposal aims to put more product on the market quickly, although any coordinated release would require agreement among multiple governments and agencies.
Market analysts say refined-product shortages tend to hit road transport and haulage particularly hard because diesel inventories are typically tighter than for petrol. The recent increase in diesel costs follows disruptions to both crude and refined product flows from the Gulf, a region that supplies significant volumes to global markets.
Policymakers and industry participants will be watching closely for any announcements on reserve releases or other measures that could curb prices. In the meantime, motorists and businesses that depend on diesel face immediate cost pressures that could translate into higher prices for goods and services as fuel becomes more expensive across supply chains.