UK Discusses Diesel Reserves as Trump Weighs Export Ban

Britain is discussing a possible release of emergency diesel reserves with European partners after President Donald Trump threatened to restrict US exports, a move that could push UK fuel prices even higher.

UK Energy Minister Martin McCluskey joined calls with European counterparts on Thursday, according to the BBC. The Guardian reported that ministers spoke with the European Commission, Germany, France, Italy and Ireland about whether to draw down stockpiles.

The discussions followed a warning from the Trump administration to Germany and France: release fuel reserves to help ease global prices or face a US export ban, The Guardian reported, citing Reuters. It remains unclear whether any ban would include the UK. Trump said at the weekend that he was considering an export ban “very seriously.”

Diesel prices in Britain are already at record levels. The RAC put the average pump price at 199.79p a litre in figures cited by the BBC, while The Guardian reported an average of 199.72p on Wednesday. The BBC said its latest cited figure was up from 142.38p a litre.

A ban would threaten a major source of supply. The US exports between 1.2 million and 1.5 million barrels of diesel a day, according to the BBC. The Guardian reported that about a third of UK diesel imports last year came from the US. Britain’s four refineries produce more than enough petrol for domestic demand but not enough diesel, the BBC said.

“We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry,” a UK government spokesperson said. The government has stressed that there is no cause for concern about diesel shortages, according to the BBC, although prices are expected to rise further.

A person familiar with the discussions told the BBC that preparing a coordinated response was prudent and that some European reserves remained from a release earlier this year. A European Commission spokesperson said there were “lots of calls, lots of meetings” on diesel, including high-level contacts with the US administration. The governing board of the International Energy Agency is due to meet Friday, the BBC reported.

Energy costs have climbed since the US-Israel war in Iran began in February and the Strait of Hormuz, a route for about a fifth of the world’s oil and gas, closed. Brent crude traded at about $72 a barrel before the war and was above $101 on Thursday, The Guardian reported. Russia, another major diesel supplier, has extended its export ban until the end of October, the newspaper said.

Trump has argued that keeping surplus US diesel at home would lower prices for American drivers, truckers and businesses. But David Fyfe, chief economist at Argus Media, told the BBC that cutting off American exports would probably send international prices sharply higher. Diesel demand is difficult to reduce because the fuel is used in haulage and agriculture, the BBC said.