UK in Talks with EU Partners to Release Strategic Fuel Reserves
The BBC understands that the UK is in discussions with EU partners about the potential release of strategic fuel reserves, including diesel, should the need arise.
This comes after President Donald Trump threatened to ban diesel exports from the US, aiming to alleviate record prices at the pumps for Americans.
Diesel prices in the UK have also hit record highs this week, reaching nearly 200p per litre, according to the RAC.
The US is a significant supplier of diesel, exporting between 1.2 and 1.5 million barrels per day. Experts warn that a ban on these exports could exacerbate price pressures in other countries.
"We're thinking about it very seriously," Trump said regarding a potential export ban over the weekend.
Energy Minister Martin McCluskey participated in a call with European counterparts on Thursday to discuss the potential ban.
A source close to the discussions stated that while there are still some EU reserves remaining from a coordinated release of strategic fuel stocks earlier in the year, it is prudent to prepare a joint response with other nations.
"We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry," a government spokesperson remarked.
The government has assured there is no cause for concern about potential diesel shortages, though prices are expected to continue rising.
A European Commission spokesperson confirmed that there have been "lots of calls and meetings" regarding the diesel situation, including high-level discussions with the US administration.
The governing board of the International Energy Agency (IEA) will meet tomorrow.
Global petrol and diesel prices have surged since the US-Israel conflict began in Iran in February. The closure of the vital Strait of Hormuz, a key oil and gas transport route, has contributed to these increased prices.
An export ban from Russia, another major diesel supplier, has also put upward pressure on prices.
Trump argues that keeping any surplus barrels 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, states that cutting off American supply would likely cause international prices to skyrocket.
Diesel prices in the UK have reached an all-time high, with the latest RAC figures showing average pump prices at 199.79p per litre, up from 142.38p.
Diesel is more challenging to refine than gasoline and is extensively used in the haulage and agricultural sectors, making demand difficult to reduce.
The UK relies heavily on imports, with its four refineries producing enough petrol to meet demand but not enough diesel.