Diesel crisis: UK minister holds emergency talks with US Energy Secretary
Energy secretary Miatta Fahnbulleh is holding crunch talks with her American counterpart over Donald Trump’s threat to curb diesel exports to Europe. City AM understands that Fahnbulleh is in direct contact with US energy secretary Chris Wright to discuss a US move to potentially choke off diesel exports to Europe that threatens to upend supply [...]
Energy Secretary Miatta Fahnbulleh is engaged in urgent discussions with her counterpart from the United States, Chris Wright, over President Donald Trump's potential curtailment of diesel exports to Europe. The UK and European Union are under pressure from Washington to release their emergency fuel reserves to address a global shortage triggered by the Middle East conflict.
US officials are considering a range of protective trade actions, from limiting exports to specific nations to an outright ban on US-produced diesel if Europe refuses to release its reserves. In a statement to Reuters, a US official emphasized the importance for Europe to collaborate with the US in increasing the supply of refined products and reducing costs for consumers.
The UK, which relies heavily on diesel imports, is particularly vulnerable to any disruption from a potential US ban. Over half of the UK's diesel supply is imported, with a third of that coming from the United States. The Fawley refinery in Hampshire, the country's largest, produces kerosene for London's Heathrow Airport and supplies one-fifth of British diesel.
This refinery is set to undergo maintenance for 10 weeks, exacerbating the supply crisis. Diesel prices have reached an all-time high of 200p per litre, causing a significant increase in fuel costs for British motorists – nearly £110 to fill a typical family car, a £31 rise since the start of the Iran conflict.
Chancellor John Healey acknowledged the extreme nature of diesel prices during a Labour party conference, stating that the UK is actively pursuing diplomatic solutions with the US, including an end to the Iran war, to alleviate the crisis. The Department for Energy Security and Net Zero emphasized the UK's resilient and diversified fuel supply while continuing to engage with international partners and the fuel industry.
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