Record diesel costs squeeze drivers, charity and haulier in southern England
A Dorset charity faces an extra £2,000 a year for a minibus service as the UK average diesel price passes £2 a litre, according to RAC Foundation analysis.
UK diesel prices passed an average of £2 a litre on 30 September, according to the RAC Foundation, adding pressure to drivers and organisations in southern England. In a report published on 1 October, BBC News described a Dorset charity facing an extra £2,000 a year to run a minibus service, while a Southampton haulier said fuel was costing an additional £250 a week per vehicle.
The national average does not describe the price at every forecourt. But interviews in Dorset, Southampton and Maidenhead show how the rise is affecting travel budgets, business costs and services that depend on vehicles. The responses reported so far range from buying smaller amounts of fuel to reconsidering optional trips or the number of trucks a business can afford to run.
What changed in UK diesel prices
The RAC Foundation said its analysis of the government's Fuel Finder data showed the UK average diesel price crossing £2 a litre at 08:00 on 30 September. It reported an average petrol price of 174.7p a litre. Earlier in the week, the RAC had put diesel at 199.33p a litre, a record at the time, according to the BBC. The later Foundation analysis marks a further threshold for the national average.
The RAC's Fuel Watch page lists its earlier record diesel average as 199.09p a litre, reached in June 2022. The Foundation's newer figure exceeds that mark. A national average can move differently from a price on an individual station sign, and a driver may pay more or less depending on where they fill up.
The BBC reported that the RAC linked the increase to the conflict involving the US, Israel and Iran, which began at the end of February. It said diesel had risen by just under 40% since then. RAC Fuel Watch says pump prices also reflect wholesale fuel costs, refining, currency movements, distribution, retailer margins, duty and VAT. The available figures do not isolate how much of the increase is due to any one factor.
Dorset charity weighs the cost of keeping minibuses running
MS Centre Dorset runs five minibuses to bring users from across the county to its base in West Parley, the BBC reported. Manager Diana Logan-Watts told the broadcaster that higher diesel prices had added about £2,000 a year to a key minibus service, an extra annual cost the centre had not budgeted for.
Logan-Watts said the centre intended to keep transporting its users. She did not want to pass higher costs to members who were already struggling with living expenses. Instead, she said, the charity would have to look more closely at additional services, including trips, and how they would be funded. That is a possible response to the cost pressure, not a reported decision to stop those trips.
Her account illustrates a constraint that a pump price alone cannot show: the minibus journeys connect users to the centre, while the extra money has to come from the charity's budget. The BBC did not report a replacement source of funding or a confirmed reduction in its service.
How drivers and transport businesses are responding
At the Littlewick Green Motor Company garage in Maidenhead, manager Ian Govier told the BBC that some customers were putting £10 or £20 into their vehicles instead of their usual £50. He said more customers were paying cash to control their budgets. Smaller purchases change the amount paid on a visit, although they do not lower the price per litre.
Govier also described pressure on the garage itself. He said the per-litre margin he needed to maintain the same profit had risen from about 6p a decade ago to nearly 15p. The BBC reported that he had invested in a camera system after fuel thefts involving illegal ghost registrations, another expense for the business.
In Southampton, taxi driver Neil McLean told the BBC that rising prices were taking money out of drivers' pockets. David Price, who owns the Southampton-based DCP Haulage, said fuel now cost his firm an extra £250 a week per vehicle. If conditions did not improve, he said, he might park trucks, scale down further or close. Those were options he was considering, rather than outcomes already reported.
What help or savings are evidenced
The RAC Foundation calculated that 86p of a £2 litre of diesel went to fuel duty and VAT, and that 82p of its reported 174.7p petrol price was tax. Its director, Steve Gooding, argued that cutting fuel tax could help drivers and businesses, while saying many people cannot choose whether to make a journey. That is the Foundation's policy argument; its price analysis does not show what the government will do next.
RAC Fuel Watch advises drivers to compare nearby forecourts, including independent retailers. It says its app can search prices within two, five or ten miles. Prices can differ substantially: the RAC cites a March 2024 investigation that found a 27p-per-litre difference between two petrol stations a short drive apart. That example shows why comparing prices may matter, but it does not establish that a cheaper, practical option is available for every driver.
The scale of exposure extends beyond the people interviewed. The RAC Foundation estimated that UK roads have about 4.6 million diesel vans, 10.3 million diesel cars and 18.9 million petrol cars. Those national counts provide context for the price change; they do not measure how many households or businesses face the same pressures as the BBC's interviewees.
What remains open before the Budget
The BBC reported that the Chancellor pointed to the Budget, expected near the end of October, as the time for the government to address questions about rising fuel costs. It also quoted Defence Secretary John Healey saying he was concerned about pressure on families and businesses and that the government would act where it could. Neither account establishes what, if any, new measure will be announced.
For now, the reported responses are local and limited: some motorists are controlling what they spend at each visit, a charity is examining the cost of extra trips, and a haulage owner is weighing possible changes to his fleet. The next concrete national decision described in the BBC report is the Budget; until then, the price data and the interviews establish the pressure, while the extent of any future support remains unknown.
Sources and context
- Fuel prices leave people in the South asking 'what can we do?'BBC News
- Diesel pushes through £2 a litre markRAC Foundation
- Latest UK petrol and diesel pricesRAC
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.
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