In short
- Donald Trump said at the weekend the US was “thinking about it very seriously” about restricting diesel exports, and on Thursday said he may ask European countries to release some of their reserves.
- US Treasury Secretary Scott Bessent said European partners should make additional diesel supplies “immediately available to address ongoing disruptions”.
- The United States exports between 1.2 and 1.5 million barrels of diesel per day.
- UK diesel prices averaged 199.79p per litre this week, a record, up from 142.38p, according to the motoring organisation the RAC.
- There were 15.1 million diesel vehicles on UK roads at the end of June, down from 15.7 million a year earlier, according to the Department for Transport.
Donald Trump said on Thursday he may ask European countries to release some of their diesel reserves, as he considers restricting US exports of the fuel. Treasury Secretary Scott Bessent urged European partners to make supplies available immediately, saying US farmers, truckers and businesses should not carry the burden of rising prices.
What has Trump said about a diesel export ban?
Speaking at the weekend, Donald Trump said of a possible export ban: “We’re thinking about it very seriously.” On Thursday he added that he may ask European countries to release some of their diesel reserves. Scott Bessent, the US Treasury Secretary, wrote on social media that European partners should act “immediately” and “make additional supplies immediately available to address ongoing disruptions”. The proposals come weeks before November elections in the United States, in which control of Congress will be at stake.
Why are global diesel prices rising?
Global prices of petrol and diesel have climbed since the US-Israel war in Iran began in February. The closure of the Strait of Hormuz, which normally carries around a fifth of the world’s oil and gas, has pushed up the cost of oil-derived products. An export ban from Russia, also a major diesel supplier, has added to the pressure, and Chinese refiners have reportedly halted October exports of some fuel products as Beijing prioritises domestic supplies.
How high are UK diesel prices?
UK diesel prices hit a record this week, averaging 199.79p per litre, according to the motoring organisation the RAC, up from 142.38p. UK Energy Minister Martin McCluskey joined a call with European counterparts on Thursday to discuss the potential US ban. A source familiar with the discussions told the BBC it was prudent to prepare a co-ordinated response with other countries, including EU states, and that European reserves remained from a coordinated release of strategic fuel stocks earlier in the year. A UK government spokesperson said: “We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry.” A European Commission spokesperson said there were “lots of calls, lots of meetings” on the diesel situation, including with “high level contacts” in the US administration.
What would a US export ban mean for global supply?
The United States exports between 1.2 and 1.5 million barrels of diesel per day, making it a vital global supplier, so a ban could put further pressure on prices in other countries. David Fyfe, chief economist at Argus Media, said cutting off American supply would likely cause international prices to skyrocket. Trump has argued that keeping surplus barrels in the US would lower pump prices at home. Higher oil prices have also fed into borrowing costs, with the Fed and the Bank of England weighing rate rises as oil prices surge.
How dependent is the UK on imported diesel?
The UK’s four refineries make more than enough petrol to meet domestic demand but not enough diesel. There were 15.1 million diesel vehicles on UK roads at the end of June, according to the Department for Transport, down from 15.7 million a year earlier, and diesel cars fell to 9.8 million from 10.4 million. Diesel is harder to refine than petrol and, because it is used in haulage and agriculture, demand is difficult to cut.
Frequently asked questions
Has the US actually banned diesel exports?
No ban has been announced. Donald Trump said at the weekend the US was “thinking about it very seriously” and on Thursday said he may ask European countries to release some of their diesel reserves.
Why are diesel prices so high?
Prices of petrol and diesel have risen since the US-Israel war in Iran began in February, and the closure of the Strait of Hormuz has lifted the cost of oil-derived products. A Russian export ban and a reported halt to some Chinese October exports have added pressure.
How much diesel does the US export?
The United States exports between 1.2 and 1.5 million barrels of diesel per day. David Fyfe, chief economist at Argus Media, said cutting off that supply would likely cause international prices to skyrocket.
How high have UK diesel prices gone?
UK diesel prices reached a record this week, averaging 199.79p per litre according to the motoring organisation the RAC, up from 142.38p.
With reporting from BBC News.
Stock image, not from the events described. Globe World — Jo%E3o%20Silas / Wikimedia Commons (CC0 1.0)