Higher fuel prices hit demand for diesel cars

By automotive-mag.com 3 Min Read

Demand for diesel cars continues to decline with rising fuel prices impacting the market.

At three years and 60,000 miles, hybrid values rose 0.5%, with battery electric vehicles (BEVs) also up 0.3%.

Diesel fell 0.6% and has now been the weakest conventional fuel type for five months in a row. Petrol dropped 0.5%, while plug-in hybrids recorded the biggest fall at 0.8%.

Diesel now costs around 195p per litre on average in the UK, about 23p more than petrol, and is at its highest price since July 2022. Filling an average tank costs around £105. The RAC has warned diesel could pass £2 per litre if supply problems continue.

Chris Plumb, head of current valuations at Solera cap hpi, said: “Fuel prices are clearly influencing what people are prepared to buy. Diesel at around 195p a litre is difficult to ignore, particularly when it is so much more expensive than petrol. Dealers know that and are being more selective about the diesel cars they buy.

“Hybrids had a good month, and BEVs continue to settle down after several years of sharp value movements. A lot of used electric cars are now available at prices that make sense to buyers. Higher petrol and diesel prices only make that comparison more interesting.”

Average used car values fell 0.3%, or just over £90, at three years and 60,000 miles. This followed a 0.9% fall the previous month.

The BEV figures come despite a sharp increase in cars reaching the wholesale market. Disposal volumes so far this year are around 50% ahead of the same period in 2025 and have already passed the total for the whole of last year.

Plumb added: “There are far more used BEVs coming back into the market, but buyers are taking that extra stock. We haven’t seen the corresponding fall in values that might have been expected from such a large increase in supply.

“The tougher part of the market is older, higher-mileage stock. Dealers have to allow for preparation costs and the margin they need when they buy. Clean cars at the right price are still selling.”

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