UK in talks with EU partners to release strategic fuel reserves if needed, BBC understands

The UK is engaging in discussions with European partners regarding the potential release of strategic fuel reserves, including diesel, if necessary, according to the BBC. This comes in response to US President Donald Trump threatening to ban diesel exports from the US to alleviate record-high prices for American consumers. Diesel prices in the UK have reached record highs, hovering near 200p per litre, while US diesel exports account for between 1.2 and 1.5 million barrels per day.

US experts warn that a ban on shipments abroad could exacerbate price pressures in other nations. Energy Minister Martin McCluskey participated in a call with EU counterparts on Thursday to address the possibility of a US export ban. A source familiar with the talks stated that preparing a coordinated response with other countries, including EU members, was prudent, though European reserves from earlier this year remain available.

The UK government maintains that there is no cause for concern over potential diesel shortages, although prices are anticipated to continue rising. A European Commission spokesperson confirmed that numerous discussions are underway concerning the diesel situation, including with high-level contacts in the US administration. The International Energy Agency's governing board is set to meet tomorrow.

Global petrol and diesel prices have surged since the onset of the US-Israel conflict with Iran in February, with the closure of the strategic Strait of Hormuz, a key oil and gas transit route, further driving up costs. Russian diesel exports, another major contributor, have also added to price pressures. Trump contends that retaining surplus diesel within the US would help lower domestic pump prices, offering relief to drivers, truckers, and businesses before mid-term elections.

However, Argus Media chief economist David Fyfe warns that cutting off American supply could lead to a global price surge. The UK faces an acute diesel demand issue, with 15.1 million diesel vehicles on roads, up from 15.7 million a year prior, despite the four UK refineries producing more petrol than the nation requires but insufficient diesel.