UK seeks US intervention to avert looming diesel export ban

The UK is in talks with US authorities over a possible halt to diesel exports and has begun preparations for a potential ban, Chancellor John Healey told BBC News.

UK diesel prices hit a new record on Monday as supply constraints stemming from the US‑Israel conflict with Iran and Russia’s war in Ukraine push costs higher.

Global fuel prices are climbing, and US President Donald Trump has signalled a possible diesel export ban, saying at the weekend that “we’re thinking about it very seriously.”

Healey, who described UK diesel prices as “extreme”, said the government was in discussions with Washington and added that “we’re also making the provision that we may need to and we have our own stocks in the UK.”

While addressing the annual Labour Party Conference in Liverpool, Healey said, “We work very closely with the Americans.

He continued, “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.”

The UK relies on the US for about a third of its diesel imports, and a ban would drive prices up even further.

US sources indicate that Trump is weighing a ban to help lower domestic fuel costs ahead of the upcoming midterm elections.

The BBC has reached out to the White House for comment.

According to the RAC motoring organisation, the average diesel price in the UK stood at 199.18 p per litre, eclipsing the previous high of 199.09 p recorded in June 2022 after Russia’s full‑scale invasion of Ukraine.

Petrol prices are also climbing, currently averaging 174.13 p per litre.

Over the past seven months, the Iran conflict has sharply disrupted oil production and transport across the region, prompting a surge in the cost of oil‑based fuels.

The RAC warned that diesel prices have entered “uncharted territory”, highlighting how vulnerable the UK remains to distant geopolitical events.

Healey said he was “very aware” of the cost‑of‑living pressures as he prepared what he called a “breathing‑space” Budget for 28 October.

A fuel‑duty freeze, originally introduced by the Conservative government in 2022, will lapse at the end of the year. Duty is set to rise by 3 p in January and a further 2 p in March.

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

Source link