UK in talks with EU partners to release strategic fuel reserves if needed, BBC understands
President Donald Trump has threatened to ban diesel exports in a bid to ease prices in the US.
The UK is engaged in discussions with EU partners regarding the release of strategic fuel reserves, including diesel, if necessary, according to the BBC. This comes in response to President Donald Trump's threat to ban diesel exports from the US in order to curb record-high fuel prices for Americans. In the UK, diesel prices have reached record levels of nearly 200p per litre, which is just under 200p per litre, according to the RAC motoring organisation.
US President Trump expressed that he is giving serious consideration to such an export ban, which would have a significant impact on global diesel prices. Energy Minister Martin McCluskey participated in a conference call with European counterparts on Thursday to discuss the potential ban.
A source with knowledge of the discussions informed the BBC that it was prudent to prepare a coordinated response with other nations, including those in the EU. However, the government has stated that there are still European reserves remaining, which have previously been released in strategic fuel stocks. A government spokesperson emphasized that there is no cause for concern about potential diesel shortages, although prices are anticipated to continue rising.
The European Commission spokesperson mentioned that numerous talks and meetings are currently underway regarding the diesel situation, including with high-level contacts in the US administration. Additionally, a meeting of the International Energy Agency (IEA) governing board is scheduled for tomorrow.
Since the beginning of the US-Israel war in Iran in February, global petrol and diesel prices have skyrocketed. The closure of the vital Strait of Hormuz, which typically transports around a fifth of the world's oil and gas, has contributed to the increased price of oil-derived products. Furthermore, a diesel export ban from Russia, another major supplier, has added to the pressure on prices.
Trump argued that retaining surplus barrels of diesel within the US would help lower domestic pump prices, providing immediate relief to drivers, truckers, and businesses before the midterm elections. However, David Fyfe, chief economist at Argus Media, cautioned that cutting off American supply could lead to a surge in international prices. Diesel prices in the UK have reached an all-time high, with the latest RAC figures indicating an average pump price of 199.79p per litre, up from 142.38p per litre.
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