Diesel pump prices have reached an annual peak – and it now costs the average driver over £6.50 extra to fill up their tank than it did a year ago.

The latest report from the AA has revealed that the cost of diesel went up to 123.14p per litre, eclipsing the previous high of 123.08p reached in May.

According to the motoring organisation, the average 50-litre tank sets drivers back £6.57 more than this time in 2009, a rise of 12%.

With the price increase dampened only by sterling’s performance against the dollar, the stronger pound has also prevented the cost of petrol reaching an all-time high.

Although October’s 1p rise in fuel duty helped weaken the pound, analysts claim the petrol price – currently 119.08p – would have set a new record at 3p higher if the dollar exchange rate had been the same as in May.

However, a 10.44p increase over the year still means it costs an extra £5.22 to fill up on average.

The UK has the second highest diesel price in Europe and the 12th highest for unleaded petrol.

Increased pump prices were largely blamed for last month’s inflation level of 3.2%.

Consumers will feel the impact of the price increase at the pump, although most businesses reliant on diesel – such as long-distance haulage companies – have deals in place to buy fuel directly from suppliers.

AA president Edmund King said: “The stronger pound has shielded drivers and consumers from the worst of these market changes.

“However, the fallout from next January’s increase in fuel duty and higher VAT doesn’t bode well for inflation figures and sterling, if this week’s market reaction is anything to go by.

“At street level, a steady increase in pump prices, impending higher domestic energy bills, and even reduced reward points for supermarket fuel purchases, add to the sense of dread for the coming months.”