UK Prepares For Possible US Diesel Export Ban As Prices Hit Record High

Britain has begun talks with U.S. authorities over a potential halt to diesel exports and is preparing contingency measures in case a ban is imposed, Chancellor John Healey said, according to the BBC.

Diesel prices in Britain hit a record high on Monday as global fuel markets came under pressure from the U.S.-Israel conflict with Iran and Russia’s war in Ukraine.

U.S. President Donald Trump has threatened to restrict diesel exports in an effort to ease domestic fuel prices.

“We’re thinking about it very seriously,” Trump said at the weekend.

Healey told the BBC that diesel prices in Britain were “extreme” and said the government was holding discussions with Washington while preparing for possible supply disruptions.

“We’re also making the provision that we may need to, and we have our own stocks in the UK,” he said.

Speaking on the sidelines of the annual Labour Party Conference in Liverpool, Healey said Britain was working closely with the United States to ease pressure on fuel markets.

“In the end, we’re also working with the Americans where we can try and put in place what will solve this, or at least significantly ease it, which would be a diplomatic settlement [and] an end to the fighting with Iran,” he said.

Britain relies on the United States for about a third of its diesel imports, meaning restrictions on U.S. exports could put further upward pressure on domestic prices.

U.S. sources have suggested Trump is considering an export ban as part of efforts to lower fuel costs for American consumersSouth Africa’s Eskom Board Chair Nyati Gets Three-Year Term Extension ahead of the midterm elections.

The average price of diesel in Britain reached 199.18 pence per litre, according to motoring organisation RAC, surpassing the previous record of 191.5 pence set in June 2022 following Russia’s full-scale invasion of Ukraine.

Petrol prices have also continued to rise, reaching an average of 174.13 pence per litre.

The conflict involving Iran has disrupted oil production and transportation across the region over the past seven months, pushing up crude oil and refined fuel prices.

The RAC said diesel prices had entered “uncharted territory” and highlighted Britain’s exposure to disruptions in international energy markets.

Healey said he was “very aware” of the pressure higher fuel costs were placing on households and businesses as the government prepared its Budget for Oct. 28.

A freeze on fuel duty, first introduced by the Conservative government in 2022, is due to expire at the end of the year. The duty is scheduled to rise by 3 pence in January and a further 2 pence in March.

“Fundamentally, what we need is a settlement in the Middle East,” Healey said. “We need an easing of the pressure of costs on business, the costs on households and on ordinary families that we see at the pumps in the most extreme level today for diesel.”