The UK is in talks with US authorities to avert a possible ban on diesel exports and has begun preparing contingency stocks, Chancellor John Healey said. The move comes as UK diesel prices hit a fresh record, with President Trump weighing an export ban to ease costs for American drivers ahead of the midterm elections.
Chancellor John Healey said the UK is in talks with US authorities over a possible ban on diesel exports and has started preparing for one, as diesel prices in Britain hit a fresh record this week.
UK exposed to a US export ban
Healey called UK diesel prices extreme and said the government was working closely with Washington to try to solve or at least ease the problem. He added that Britain was also drawing on its own reserves in case a ban goes ahead. The UK relies on the US for around a third of its diesel imports, so a ban would push prices even higher.
Trump weighs a ban to ease costs at home
President Donald Trump has threatened to ban diesel exports as fuel prices climb globally. According to BBC News: "We're thinking about it very seriously." US sources suggest Trump is considering the move to bring down prices for domestic consumers ahead of the midterm elections.
Record prices at the pump
UK diesel reached 199.33p a litre on Monday, according to the RAC, surpassing the previous high of 199.09p set in June 2022 after Russia's invasion of Ukraine. Petrol is also climbing, with a litre now costing 174.23p. The RAC said the prices mark uncharted territory for UK motorists, underlining how exposed the country is to events far away.
Over the past seven months, the conflict involving Iran has disrupted oil production and transport across the region, pushing up the cost of fuels made from crude. Healey is preparing a Budget for 28 October, aware of the cost-of-living pressure on households. A freeze on fuel duty, first put in place in 2022, is due to expire at the end of the year, with duty scheduled to rise 3p in January and a further 2p in March.
Source: BBC News
Trading involves risk.
Risk Disclaimer
