UK in Talks with US Over Potential Diesel Export Ban

The United Kingdom is in discussions with U.S. authorities regarding a potential halt to diesel exports, with the government preparing for such a ban, according to Chancellor John Healey.

Healey told BBC News that the UK depends on the United States for approximately one-third of its diesel imports, and a ban could lead to further price increases. "We work very closely with the Americans," Healey stated, adding that the government is "making the provision that we may need to and we have our own stocks in the UK."

Diesel prices in the UK have reached a new high, attributed to supply pressures influenced by the conflict between Israel and Iran, and Russia's war in Ukraine. Global fuel prices are currently rising, and U.S. President Donald Trump has indicated serious consideration of an export ban to potentially lower domestic consumer prices ahead of midterm elections.

Healey acknowledged that UK diesel prices are "extreme" and emphasized the need for a diplomatic resolution to the conflicts in the Middle East to ease cost pressures on households and businesses. "Fundamentally, what we need is a settlement in the Middle East," he said.

In the UK, the average price for a liter of diesel reached 199.18 pence, surpassing a previous record set in June 2022. Petrol prices are also increasing, with a liter costing 174.13 pence. The RAC motoring organization noted that diesel prices have entered "uncharted territory," highlighting the UK's vulnerability to global events. Healey also indicated that the government is aware of these cost-of-living pressures as he prepares an upcoming budget, which may include a freeze on fuel duty, currently scheduled to increase in early 2023.