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

The UK is engaged in discussions with EU partners regarding the potential release of strategic fuel reserves, including diesel, if necessary, according to the BBC. This comes after US President Donald Trump threatened to ban diesel exports from the US to address record-high prices at the pump for Americans. Currently, diesel prices in the UK hover near 200p per litre, according to the RAC.

The US is a crucial supplier of diesel, exporting between 1.2 and 1.5 million barrels daily. Experts warn that a ban on exports could further increase prices in other countries. Energy Minister Martin McCluskey held a call with European counterparts on Thursday to discuss the possible ban.

The UK appears to be taking the threat seriously and is considering a coordinated response with other countries, including those in the EU, the source familiar with the discussions told the BBC. However, there are still European reserves remaining from a coordinated release of strategic fuel stocks earlier this year. The government has assured the public that there should be no cause for concern about potential diesel shortages, as the UK fuel industry remains diverse and resilient.

The government has emphasized that there is no cause for concern about potential diesel shortages, though prices are expected to rise further. A spokesperson for the European Commission said that there have been numerous calls, meetings, and discussions on the diesel situation, including with high-level contacts in the US administration.

The International Energy Agency (IEA) is also holding a meeting tomorrow to address the issue. Globally, petrol and diesel prices have surged since the US-Israel war in Iran began in February. The closure of the Strait of Hormuz, which typically transports around a fifth of the world's oil and gas, has contributed to the price increases. Russia's export ban, another major diesel supplier, has added to the pressure on prices.

US President Trump argues that keeping surplus barrels of diesel in the US would lower domestic pump prices, offering immediate relief to drivers, truckers, and businesses ahead of the midterm elections. However, David Fyfe, chief economist at Argus Media, warns that cutting off American supply could cause international prices to skyrocket.

Despite diesel's difficulty to refine compared to gasoline, the UK relies heavily on imports, as the four refineries in the UK produce more petrol than needed but not enough diesel. There are 15.1 million diesel vehicles on UK roads, down from 15.7 million a year earlier, with 9.8 million diesel cars, down year-on-year from 10.4 million.