UK tries to stop Trump's diesel export ban

The UK government is currently engaged in discussions with officials in the United States regarding a possible halt to diesel exports, while simultaneously preparing for the potential implementation of such a ban, Chancellor John Healey revealed to BBC News. The cost of diesel fuel in the UK recently reached a record high, driven by supply challenges linked to ongoing conflicts involving the US, Israel, Iran, and the war between Russia and Ukraine.

Globally, fuel prices are escalating, with the US President having indicated over the weekend that a diesel export ban is under serious consideration. Healey acknowledged the severity of the situation in the UK, describing diesel prices as “extreme.” He emphasized that the government is working closely with American authorities and is making provisions within the UK to manage its own diesel stockpiles in case imports are curtailed.

Speaking at the Labour Party Conference in Liverpool, Healey highlighted the importance of diplomatic efforts to resolve the conflicts contributing to these supply issues. He stated, “We work very closely with the Americans… 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.” Currently, the UK sources roughly one-third of its diesel from the US, meaning any export restrictions could drive prices even higher.

US insiders suggest that the motivation behind a potential ban is to reduce fuel costs for American consumers ahead of midterm elections. The average cost of diesel in the UK climbed to 199.33p per litre on Monday, surpassing the previous peak recorded in June 2022 following Russia’s full-scale invasion of Ukraine. Petrol prices have also continued their upward trend, with costs reaching 174.23p per litre. The disruption of oil production and transportation over the last seven months due to the conflict in Iran has further exacerbated fuel price increases. The RAC noted that diesel prices have reached “uncharted territory,” underscoring the UK’s vulnerability to international events. Healey, aware of the impact on households and businesses, is preparing a Budget scheduled for 28 October aimed at providing some relief, even as fuel duty freezes are set to expire, with planned increases in early 2024. He stressed, “Fundamentally, what we need is a settlement in the Middle East. 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.

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