Diesel Prices Hit Record High as Trump Considers Export Curbs

UK diesel prices have reached a new record high of 199.18p per litre, surpassing the previous peak of 199.09p set in June 2022. The increase comes as reports indicate that former President Donald Trump is contemplating restrictions on U.S. diesel exports, a move that could exacerbate the situation for international drivers.

The White House has signaled a potential announcement regarding fuel prices, contributing to market volatility. This comes as Brent Crude oil prices have climbed, exceeding $108 a barrel amidst the ongoing Iran war crisis.

RAC head of policy Simon Williams stated that the current diesel price represents a significant financial burden for households and businesses reliant on vehicles. The cost to fill an average family car with diesel has now reached nearly £110, an increase of £31 since the start of the US-Iran conflict. Williams warned that the ripple effect of higher diesel costs will likely be passed on to consumers through increased prices for goods and services.

Petrol prices are also on the rise, with an average litre of unleaded now costing 174.13p, 41p higher than before the conflict, bringing the cost of a full tank to almost £96.

During a Politico event at the Labour conference, Business Secretary Jonathan Reynolds expressed concern about potential U.S. export curbs, emphasizing the UK's reliance on diverse supply chains for fuel.

Economists have cautioned that while U.S. export restrictions might temporarily lower domestic prices, they could lead to long-term increases globally and potentially push European countries into recession. Former President Trump told Fox News that the U.S. is considering these export curbs "very seriously," acknowledging a potential, albeit temporary, increase in gasoline prices for cars.

Calls are mounting for Chancellor John Healey to implement measures in the upcoming Budget to alleviate pressure on motorists. Fuel duty currently accounts for 52.95p per litre of petrol and diesel prices. The government had previously postponed a planned 5p increase until the end of the year, and opposition parties are advocating for an extension of this freeze.