Diesel prices have reached their most expensive level since December 2022, new figures show, as the Iran oil crisis escalates.

The RAC said the average price of a litre of the fuel at UK forecourts on Monday was 181.2p.

That represents a 27% increase from 142.4p on February 28, the day the war in the Middle East began.

Average petrol prices have reached 152.0p per litre, a rise of 14% from 132.8p over the same period.

RAC head of policy Simon Williams said: “Compared to the start of the Iran conflict, it costs £10.55 more to fill up a typical family car that runs on petrol, and £21.35 more for a comparative diesel car.

“The financial strain on the eight in 10 motorists that tell us they depend on their cars continues to build, and at a particularly rapid rate for those who drive diesel vehicles.”

The 29.2p price difference between diesel and petrol is the largest since at least 2003.

UK oil refineries are more geared towards producing petrol than diesel, so the country’s supply of the latter is more reliant on imports.

Oil prices – which have a significant effect on the cost of wholesale fuel – have soared in response to Iran’s stranglehold on tankers passing through the Strait of Hormuz.

Latest DVLA figures show there were 16.2 million diesel vehicles licensed in the UK as of the end of September last year.

This included the vast majority of light goods vehicles, such as vans.

Steve Gooding, director of motoring research charity the RAC Foundation, described diesel as “the lifeblood of millions of small businesses” and warned that “white van man is bleeding cash just to stay on the road”.

He went on: “Whether you drive or not, soaring diesel prices will take money out of your pocket, either at the pump or in the bills you pay for everything from calling out the plumber to getting a home delivery.

“If oil prices remain at this level the impact on the forecourt could be felt for weeks, if not months.

“That’s bad news for everyone, not just drivers of the UK’s 4.6 million diesel vans, the majority of which will be used for work purposes.”

There are mounting calls for the Government to abandon the increase in fuel duty planned for September because of the rise in pump prices.

Chancellor Rachel Reeves announced in her November 2025 budget that the 5p-per-litre cut in fuel duty introduced by the Conservative government in March 2022 would only be extended until the end of August 2026, with rates then gradually returning to March 2022 levels over the next five years.

AA president Edmund King said: “Government can consider what they do with fuel duty in September but, frankly, that is five months away, and arguably industry needs help now.

“With higher pump prices, the Government has been gaining more in VAT, so there is some ‘free’ money in the system that could be used to help drivers out.”

Downing Street has insisted forecourts are “well-stocked nationally” amid reports of pumps running dry in some locations.

Asked whether the Government was planning for any shortages, the Prime Minister’s spokesman replied: “We’ll always plan for all eventualities.”

He added: “To be very clear, as the PM (Sir Keir Starmer) has said and as the Government have said, and indeed industry have said, fuel production and imports are continuing.

“The UK benefits from diverse and resilient supply.

“Petrol stations in the UK are well-stocked nationally and any suggestion otherwise is incorrect.”

The bourse fell on Monday as surging oil prices and rising bond yields intensified fears of imported inflation and external-account stress, with investors also tracking the widening Middle East conflict and its spillover risks for trade and industrial activity.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index traded between a high of 151,813.61 (up 106.10 points, or 0.07%) and a low of 144,656.97 (down 7,050.54 points, or 4.65%) compared to the previous close of 151,707.51.

“Stocks witnessed selling amid concerns for Middle East conflict impacting industrials output and surging interest rates,” said Ahsan Mehanti, Managing Director and Chief Executive Officer of Arif Habib Commodities.

“Surging Govt bond yields, higher crude oil prices impacting external account played catalyst role in bearish activity at PSX,” he added.

Oil rallied as the conflict entered its fifth week, with Yemen’s Houthi rebels saying they fired cruise missiles and drones at strategic sites in Israel, adding to concerns about a widening theatre and disruption risks around the Red Sea and the Strait of Hormuz.

Saudi Arabia rerouted much of its oil exports via the Red Sea to avoid Hormuz, which the report said has been effectively closed, pushing crude to its highest level since earlier in the month; Brent climbed close to $117 a barrel at one point.

Risk aversion also hit global equities, with heavy falls reported across Asian markets after Wall Street’s sell-off.

Adding to the cautious mood were US President Donald Trump’s remarks about wanting to “take the oil in Iran” and that the United States could take Kharg Island “very easily”, while Iran’s parliament speaker warned Washington was “secretly planning a ground attack”.

Foreign flows remained under pressure. State Bank of Pakistan (SBP) data showed overseas investors withdrew a net $177.9 million from Pakistan’s Treasury Bills (T-bills) as of March 19, compared with $31.2 million in February, while also selling $21 million in Pakistan Investment Bonds (PIBs) and $148.7 million from their Pakistan Stock Exchange portfolios by March 19.

Overall, the report said foreign investors sold T-bills, PIBs and equities worth $348 million as heightened global risk sentiment and higher oil prices drove a flight from emerging-market exposure.

On the inflation front, weekly inflation measured by the Sensitive Price Indicator (SPI) rose 0.97% in the week ended March 26 to 345.45 points, and was up 8.24% year-on-year, the Pakistan Bureau of Statistics (PBS) said.

On Friday, the KSE-100 Index extended losses, shedding 1,200.45 points (0.79%) to close at 151,707.52 from 152,907.97, trading between 153,660.89 and 151,457.95.

LPG crisis for factories across the country seems to be easing as the government steps up availability of commercial liquefied petroleum gas. Production disruptions are gradually subsiding as supplies of commercial LPG improve and migrant workers return to factories, supported by companies providing meals or alternative cooking solutions.This improvement follows the government’s move on Friday to raise the allocation of commercial LPG by an additional 20 percentage points, taking it to 70 per cent of pre-disruption levels that had been affected by the Gulf conflict and Iran’s near blockade of the Strait of Hormuz.