UK diesel prices exceed £2 per litre for first time as G7 agrees oil release

The average price of diesel has risen above £2 a litre in the UK for the first time, according to the RAC motoring group, as G7 nations agreed to release 100 million barrels of oil to head off further increases.

Diesel has now hit an average of 200.01p a litre, the RAC said, and petrol prices are also still rising, reaching 174.71p a litre on average.

The motoring group said price rises were "showing no signs of slowing, heaping more misery onto motorists".

The G7 group of advanced nations, including the US, said the move would stabilise supplies and shield households from further price spikes at a time of "unprecedented volatility in oil markets".

The G7 also agreed member countries would not impose export restrictions on each other, after President Donald Trump threatened to ban shipments of US diesel overseas.

The move would have pushed up global prices of the fuel, but helped ease pressure on US consumers ahead of November's midterm elections.

He had said this week the ban would go ahead if European countries did not put more of their own reserves on the market.

But the G7 on Friday said its agreement will avoid moves that "could exacerbate market tensions".

"We will implement our commitments with a coordinated release through the International Energy Agency (IEA) of 100 million barrels to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days by G7 members and partners," the group said in a joint statement.

The G7 counts the US, UK, Canada, Japan, Germany, Italy and France as members, with the EU also represented at its meetings.

European countries had pushed back against US threats to turn off American diesel, against a backdrop of the US-led war in the Middle East and reduced supplies from Russia and China.

The threatened ban was averted as diesel prices in the UK hit an average of 200.01p a litre, motoring body the RAC said, while petrol prices are also rising, reaching 174.71p a litre on average.

UK businesses and consumers already feel like they are bearing the brunt of higher prices, with many saying it makes their lives increasingly difficult.

Even people who do not drive a diesel vehicle themselves face a knock-on effect from rising delivery costs or the higher cost of producing food.