Fuel prices jump again

Fuel costs have risen sharply again in March, with diesel up more than 20p per litre since the start of the Iran conflict, increasing pressure on fleet operating costs.

RAC data shows diesel has climbed from 142.83ppl on 28 February to 162.66ppl, while petrol has risen from 132.83ppl to 142.62ppl over the same period.

Latest fuel price movement:

  • Diesel: 142.83ppl → 162.66ppl (+20.3p / +14.2%)
  • Petrol: 132.83ppl → 142.62ppl (+9.8p / +7.4%)

The increases follow Brent crude reaching $112 per barrel, with further volatility expected. The RAC has previously warned diesel could approach 180ppl if wholesale prices remain elevated.

The Competition and Markets Authority said it is monitoring pump pricing and will act if retailers are found to be exploiting rising costs.

Why have diesel prices increased much faster than petrol?

  • Diesel markets were already tight before the conflict.
  • The disruption has removed a significant share of global diesel exports. In simple
    terms, diesel had less ‘spare capacity’, so it reacts more sharply to shocks.
  • Diesel is also more essential in global trade. It doesn’t just power cars, it’s used
    for trucks and logistics, ships, agriculture and construction. Because of that, demand
    is constant and global. Even when prices rise, demand doesn’t drop much.
    Refining diesel is also more constrained, and supply was already stretched in
    Europe.

In short, petrol is a consumer fuel, while diesel is an industrial fuel, so demand is
‘non-negotiable’.

Read Monday's commentary here: https://www.fleetwise.services/blogs/news/fuel-prices-where-we-are-now

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