UK in Talks with EU Over Fuel Reserves Amid US Export Ban Threat

Britain is in discussions with its European Union partners regarding the potential release of strategic fuel reserves, including diesel, should the need arise. The talks come after U.S. President Donald Trump indicated he was "thinking about it very seriously" regarding a threat to ban diesel exports from the United States. This potential U.S. action is intended to lower record high prices at the pump for Americans.

Diesel prices in the UK have also reached record highs this week, hovering just below 200 pence per liter, according to the motoring organization the RAC. The United States is a significant global supplier of diesel, exporting between 1.2 and 1.5 million barrels daily. Experts have cautioned that a ban on these shipments could intensify price pressures in other nations.

Energy Minister Martin McCluskey participated in a call with European counterparts on Thursday to discuss the potential U.S. ban. A source familiar with the discussions stated that preparing a coordinated response with other countries, including those in the EU, is prudent. However, the source also noted that European reserves still exist from a coordinated release of strategic fuel stocks earlier in the year. A government spokesperson affirmed that the UK has a diverse and resilient supply and continues to engage with international partners and the UK fuel industry, emphasizing there is no cause for concern about potential diesel shortages, despite expected price increases.

A European Commission spokesperson confirmed that numerous discussions and meetings are underway concerning the diesel situation, involving high-level contacts with the U.S. administration. The governing board of the International Energy Agency (IEA) is scheduled to meet on Friday.

Global prices for petrol and diesel have seen a substantial increase since February, partly influenced by geopolitical events impacting oil transportation routes. The closure of the Strait of Hormuz, a critical chokepoint for oil and gas transport, and a potential export ban from Russia, another major diesel supplier, have added to these pressures.

President Trump's argument for an export ban is that retaining surplus diesel within the U.S. would directly lower domestic pump prices, providing immediate relief to drivers, truckers, and businesses ahead of midterm elections. However, analysts suggest that restricting American supply could lead to a significant surge in international prices.

Diesel is a more complex fuel to refine than gasoline. Its widespread use in the haulage and agricultural industries makes demand reduction challenging. The UK relies heavily on diesel imports, as its four domestic refineries produce more than enough petrol to meet demand but not sufficient quantities of diesel. As of the end of June, there were 15.1 million diesel vehicles on UK roads, a slight decrease from the previous year.