By GB News (Politics) | Created at 2026-09-28 16:32:00 | Updated at 2026-09-28 21:01:20
6 hours ago
A Treasury Minister has suggested that Labour can use measures to ease the fuel price burden on motorists as diesel reaches an all-time peak.
Data from RAC Fuel Watch shows that the UK average price for diesel is now 199.18p per litre, surpassing the previous high of 199.09p in 2022.
The previous peak came in the months following the Russian invasion of Ukraine, with the new all-time high coming as the war between the US and Iran continues.
Diesel is now 56.8p more expensive per litre than it was at the start of the conflict on February 28, a massive 40 per cent price hike.
The RAC states that diesel prices continue to rise by an average of 0.13p, suggesting that a litre could hit £2 in the coming days.
Experts have called on the Government to reduce the burden on drivers as increasing petrol and diesel prices show no signs of slowing down.
Treasury Minister Emma Reynolds said the record price of diesel was "very worrying", but attempted to reassure drivers struggling to deal with high costs.
Speaking on BBC Radio 4's The World At One programme, the Labour MP for Wycombe said: "We have levers at our disposal.
Treasury Minister Emma Reynolds said the Government could use 'levers' to reduce fuel prices
PA/GETTY
"Obviously, what we'd also like to do is de-escalate the situation in the Middle East, and that's the sort of focus of our foreign policy.
"But at the same time, we recognise that people face challenges at home. Diesel is very worrying, not only for families but obviously also for businesses."
She pointed to work announced by former Prime Minister Sir Keir Starmer and ex-Chancellor Rachel Reeves to address high fuel costs.
In May, Labour announced an extension to the 5p per litre fuel duty cut until the end of 2026 to help petrol and diesel car owners.
Treasury Minister Emma Reynolds said the Government had 'levers' to address the soaring cost of fuel
Under measures announced in the previous Budget, the 5p cut was to be gradually withdrawn by 1p in September 2026, 2p in December 2026 and 2p in March 2027.
Sir Starmer said the intervention would help drivers save even more by keeping taxes down for motorists.
The rate of fuel duty will increase by 3p in January next year, although Chancellor John Healey could confirm changes in his first Budget at the end of October.
Emma Reynolds highlighted that any measures beyond the fuel duty freeze would need to be taken by the Treasury at the Budget on October 28.
Experts have consistently called on the Government to reduce the rate of fuel duty as an immediate stopgap to prevent petrol and diesel prices from increasing even faster.
Simon Williams, head of policy at the RAC, said: "As things stand, another 5p a litre will be loaded onto pump prices by the Spring if the current fuel duty cut is fully reversed as planned.
"VAT receipts from fuel are also extremely high, so drivers will be watching this coming week's Labour Party Conference, and October's Budget, very carefully indeed."
A DESNZ spokesperson told GB News: "We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry."
