Diesel prices are expected to fall in the coming weeks after an agreement between Europe and the US to pump more stock into the market.
A number of countries agreed to increase supplies in return for a guarantee that America would continue to supply fuel to the continent.
This does not include the UK as it has only 40 days of supply in reserve, and imports more than half of its diesel requirements.
The deal should see the price of diesel fall from above £2 a litre, though this may prove to be temporary once these emergency supplies are exhausted.
The soaring price of diesel is particularly affecting the haulage and bus sectors, with some companies warning they could be forced out of business unless they pass on the cost to customers, which in turn feeds into the wider market and pushes up inflation.
RAC figures show that a litre of diesel has risen 57.6p since the start of the US-Iran war at the end of February. Petrol hit 174.71p on Friday, an increase of 41.9p.
Simon Williams, the head of policy at the RAC, said: “In a cruel twist, it’s diesel vehicles, which were once considered the most cost-effective option for lengthy journeys, that are now burning a hole in people’s pockets.
“Households will be tightening the purse strings, while businesses may have no option but to pass these additional costs on to customers.”
Meanwhile, Gary Smith, the GMB general secretary, accused the UK government of relying on “sticking-plaster politics” while companies struggled with high energy costs and warned that rising energy bills would create a raft of fresh strikes across the public and private sector.
Speaking to The Times, Mr Smith described the Department for Energy Security and Net Zero as “basically the ministry for P45s” and said: “We are [using] sticking-plaster politics all the time.” He added: “It’s not credible. Batshit crazy.”
His intervention came as ministers consider approving drilling in the Rosebank oilfield and Jackdaw gasfield, off the coast of Scotland.
They were previously approved under the Conservatives but consent was overturned by a judge in January last year as environmental assessments had failed to take account of the emissions created. This has been addressed and the operators have continued to invest in the fields to prepare for drilling.
Mr Smith warned that rejecting either project would damage confidence in Britain as a place to invest. He went further by backing additional North Sea exploration.
A decision on Rosebank and Jackdaw was due earlier this month but was delayed when Sir Keir Starmer resigned his Holborn & St Pancras seat and called a by-election taking place this week and which will be keenly contested by the Green Party.
Andy Burnham told delegates at last week’s Labour Party conference in Liverpool that he would be “pragmatic” in relation to North Sea oil and gas, and Miatta Fahnbulleh, the Energy Secretary, is expected to make a decision in the coming days.
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