The government has moved to avert panic at the pumps, insisting that the UK is not facing a diesel shortage after Donald Trump threatened to cut off US supplies of the fuel. The transport minister Keir Mather said on Friday that the UK has a wide range of sources of the fuel and is in talks with other European countries over the potential release of emergency diesel stockpiles. The government’s obligation now is to work really closely with our partners [in Europe] and officials in the US administration to re-stress how important it is to have flows of diesel into the UK.” The UK relies on the US for about 30% of its diesel, with the vast majority coming from mainland Europe, and has reserve supplies for 42 days.
Earlier this week it emerged that the UK’s biggest refinery, Fawley in Hampshire, is set to shut down for up to 10 weeks for planned maintenance. The UK had 18 refineries in the 1980s but now has only four. On Thursday the UK opened talks with European allies over releasing emergency diesel supplies, after the Trump administration told Germany and France to release their stockpiles to help ease soaring prices or face a US supply ban.
The average price of a litre of diesel in the UK hit an all-time high on Wednesday of 199.72p, according to the motoring body the RAC. Earlier this week the RAC called on the government to extend the freeze into spring. That is why we have a fuel duty freeze in place at the moment.
The chancellor will set out the future of that at the budget, but is very aware of the impact that [high prices] are having on people.” On Friday, Dan Jørgensen, the EU commissioner for energy, said Europe was discussing the issue of whether to release emergency reserves of diesel with all members of the International Energy Agency, not only the US.
Extract — continue reading at the source.
