Britain is in talks with EU partners to release additional strategic fuel reserves, including diesel, if needed, the BBC understands. The talks come after President Donald Trump threatened to ban diesel exports from the US in a bid to reduce record prices at the pumps for Americans. Diesel prices in the UK also hit record highs this week and are hovering just under 200p per litre, according to motoring organisation the RAC.
The US is a vital supplier of diesel to the world, exporting between 1.2 and 1.5 million barrels per day, with experts warning a ban on shipments abroad could put further pressure on prices in other countries. "We're thinking about it very seriously," Trump said of an export ban at the weekend. Energy Minister Martin McCluskey was on a call with European counterparts on Thursday to discuss the potential ban.
A source familiar with the discussions told the BBC it was prudent to prepare a co-ordinated response with other countries, including those across EU, but added that there were still European reserves left from a coordinated release of strategic fuel stocks earlier in the year. "We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry," a government spokesperson said.
The government has stressed that there is no cause for concern about potential diesel shortages, though prices are expected to rise further. What a US diesel export ban could mean for you A European Commission spokesperson said today that there were "lots of calls, lots of meetings" taking place on the diesel situation, including with "high level contacts" in the US administration. A meeting of the governing board of the International Energy Agency (IEA) is taking place tomorrow.
Prices of petrol and diesel globally have skyrocketed since the outbreak of the US-Israel war in Iran in February. The closure of the vital Strait of Hormuz, which typically transports around a fifth of the world's oil and gas, has pushed up the price of products made from oil. An export ban from Russia, also a major supplier of diesel, has added to the pressure on prices.
Trump has argued that keeping any surplus barrels of diesel in the US would lower pump prices domestically, offering immediate relief to drivers, truckers, and businesses ahead of the midterm elections. But David Fyfe, chief economist at Argus Media, said cutting off American supply would likely cause international prices to skyrocket. Diesel prices have hit an all-time high in the UK, with the latest RAC figures showing average pump prices at 199.79p per litre, up from 142.38p Diesel is harder to refine than gasoline and, because it is used by the haulage industry and in agriculture, it is very difficult to reduce demand.
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