UK Weighs Coordinated Fuel Reserve Release as US Diesel Export Ban Threat Looms

Britain has opened discussions with European Union partners about the possibility of releasing additional strategic fuel reserves, including diesel, should global supply conditions worsen, according to information obtained by the BBC. The behind-the-scenes talks reflect growing unease among European governments over a potential shake-up in worldwide diesel flows.

The conversations were prompted by a threat from US President Donald Trump to halt diesel exports from the United States, a move he says would bring down record pump prices for American motorists. Because the US is one of the world's most important diesel suppliers, any restriction on its shipments abroad would ripple through international markets and could intensify price pressure in importing nations.

Diesel prices in the UK climbed to an unprecedented level this week and remain just below the symbolic 200 pence per litre mark, according to figures from the RAC, a motoring organisation. That milestone has focused attention on how dependent Britain is on imported diesel and how little room there is to absorb further disruption.

The United States exports roughly 1.2 million to 1.5 million barrels of diesel every day, making it a linchpin of global supply. Energy analysts have cautioned that cutting off those volumes would probably send international prices soaring, even if American domestic prices temporarily eased.

Trump confirmed at the weekend that his administration is giving the idea serious consideration. "We're thinking about it very seriously," he said, framing an export ban as a way to shield US drivers, truckers and businesses from high costs ahead of the midterm elections.

Energy Minister Martin McCluskey joined a call with European counterparts on Thursday to discuss the possible consequences of such a ban. A source familiar with the discussions described the preparation of a coordinated response with other countries, including EU members, as a sensible precaution. The same source noted, however, that European reserves remain from a joint release of strategic fuel stocks earlier in the year.

A government spokesperson sought to reassure the public, saying: "We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry." Ministers have stressed there is no reason to fear diesel shortages, while acknowledging that prices are likely to continue rising.

The European Commission confirmed that the diesel situation is generating intense diplomatic activity. A spokesperson said there had been "lots of calls, lots of meetings," including high-level contacts with the US administration. The governing board of the International Energy Agency is scheduled to meet on Friday, giving member countries a further forum to coordinate their response.

Global petrol and diesel prices have surged since the outbreak of the US-Israel war in Iran in February. The closure of the Strait of Hormuz, a chokepoint that normally carries about a fifth of the world's oil and gas, has driven up the cost of refined products. An export ban from Russia, another major diesel supplier, has compounded the strain.

David Fyfe, chief economist at Argus Media, warned that restricting American supply would be counterproductive for the wider market, arguing it would likely cause international prices to spike. His assessment underscores the dilemma facing policymakers: measures that relieve pressure at home can aggravate it abroad.

The UK's vulnerability stems from its refining profile. The country's four refineries produce more than enough petrol to satisfy domestic demand, but they cannot manufacture enough diesel to meet national needs. As a result, Britain relies heavily on imports to keep haulage fleets, farms and businesses running.

Diesel is more difficult to refine than petrol and is used across the haulage and agricultural industries, making demand very hard to reduce in the short term. The latest RAC data put the average UK pump price at 199.79p per litre, up sharply from 142.38p, an all-time high that illustrates the scale of the challenge for consumers and industry alike.

According to the Department for Transport, there were 15.1 million diesel vehicles on UK roads at the end of June, down from 15.7 million a year earlier. The number of diesel cars fell to 9.8 million from 10.4 million, a decline that reflects changing buying habits but does little to alter the country's immediate fuel needs.

For now, the government's strategy appears to be one of careful preparation rather than panic. By keeping channels open with EU partners and the fuel industry, UK officials hope to ensure that any coordinated release of reserves can be activated quickly if the situation deteriorates, while publicly maintaining that supplies remain secure.