Diesel prices have hit record average levels in the UK, according to the latest fuel price reports from the AA.

The average price of diesel in the UK has overtaken the record set in May last year, hitting 143. 05 p a litre.

Since peaking at 143.04p a litre on 5 May last year, the pump price of diesel fell back to 137.59p in July before starting to climb again. Two years ago, diesel in the UK averaged 113.62p a litre.

(Graph courtesy of www.whatgas.com)

For a commercial van with an 80-litre fuel tank, the cost of filling up has risen from £90.90 in February 2010 to £ 114.44 now, having dropped to £110.07 in July.

Edmund King, the AA’s President said:

“A stronger pound has staved off this moment for longer than might have been expected, but diesel drivers across the country will have been watching in trepidation. They hoped that below-record prices would hold until the spring, when winter price pressures on diesel traditionally ease.”

Diesel Prices Rising Faster Than Oil Prices

These graphs from WhatGas.com show that diesel prices have been accelerating steadily away from underlying oil prices:

(Graph courtesy of www.whatgas.com)

The fuel market is far from transparent and the effects of financial market speculation on oil prices can be dramatic – and unpleasant for ordinary motorists. There is no way for us to know whether we are paying a fair price for petrol and diesel – and the profits accumulated by the major oil companies suggest that we might not be.

The AA has written to the Chancellor calling for an investigation of the oil, refining, fuel product and retail markets to ensure UK families and business are protected from over-inflated prices and supply difficulties.

In the meantime, I would expect the van hire market to continue to do well as high fuel prices and uncertain business conditions prompt owners to delay fleet replacements but to seek out the most fuel efficient vans – both objectives that can best be met by daily rental or contract hire.