UK Consults Allies on Diesel Stocks as Trump Threatens Export Ban

Britain has engaged in urgent discussions with Germany, France, Italy, and Ireland, as well as the European Commission, regarding the potential release of emergency diesel stockpiles. These talks come in response to threats from the Trump administration to impose a US export ban on the fuel.

US officials have conveyed to France and Germany that they should utilize their emergency inventories to help stabilize global fuel prices, warning of potential export restrictions otherwise. This move is seen as an escalation of pressure on Europe, with the potential ban being considered by the administration ahead of the US midterm elections next month. France and Germany have reportedly not fully acted on previous commitments to release emergency fuel stocks, frustrating US officials.

One US official stated that it is in Europe's interest to collaborate with the United States to increase the supply of refined products and lower consumer costs. Another source indicated that the US has requested the European Union to release 120 million barrels of diesel over the next six months. US Energy Secretary Chris Wright has suggested that announcements regarding new diesel supplies from Europe are expected soon, citing interruptions in diesel exports from the Middle East and China.

French President Emmanuel Macron has not directly discussed the issue with President Trump, according to an official at the Elysee Palace. However, Macron is planning a video conference with G7 leaders to address rising fuel prices and global availability of refined products, including coordinated reserve releases with the International Energy Agency.

Europe's reliance on US fuel has increased following its ban on Russian imports due to the invasion of Ukraine and disruptions from conflicts in the Middle East. In the UK, diesel prices reached a new record high on Monday, exceeding the previous peak set after Russia's invasion of Ukraine in 2022. The average price for a liter of diesel stood at 199.72 pence, a significant increase since the start of the US-Iran war. This rise is attributed to the impact of the ongoing Russia-Ukraine conflict and renewed hostilities in the Middle East on global supplies. Russian diesel exports have decreased due to Ukrainian attacks on its refineries, increasing demand for fuel from other exporting nations and driving up wholesale prices. The US-Iran conflict is also impacting global trade in refined oil products, with Iran's actions affecting the Strait of Hormuz.

The cost of unleaded petrol has also been rising, with the average price per liter at 174.54 pence. The number of diesel-fueled vehicles licensed in the UK has seen a slight decrease year-on-year. Motoring organizations are urging the UK government to extend the current 5 pence cut in fuel duty beyond its scheduled reversal at the end of the year. The Chancellor is expected to announce a decision on fuel duty in his upcoming Budget speech. Separately, the chief executive of EDF Energy has warned of a potential second significant energy crisis in Britain, predicting price increases for petrol, diesel, and gas due to geopolitical factors.