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

Britain is holding discussions with European Union partners about the possibility of releasing additional strategic fuel reserves, including diesel, should market conditions require it, according to sources familiar with the matter.

The deliberations follow a warning from US President Donald Trump that he may restrict diesel exports from the United States in an effort to bring down record fuel prices for American motorists. Trump confirmed at the weekend that his administration was giving the idea serious consideration, saying: "We're thinking about it very seriously."

Energy Minister Martin McCluskey joined a call with European counterparts on Thursday to discuss the implications of a potential US export ban. A source close to those discussions described the move as a sensible precaution, noting that coordinating a response with other nations — including EU member states — would be prudent given the interconnected nature of global fuel markets.

The same source indicated, however, that European countries still hold reserves left over from a coordinated release of strategic fuel stocks earlier in the year, suggesting that any fresh action would be a contingency measure rather than an immediate necessity.

A government spokesperson sought to reassure the public, stating: "We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry." Ministers have stressed that there is no immediate cause for concern about diesel shortages, though they acknowledge prices are likely to climb further.

The concern centres on the outsized role the United States plays in global diesel supply. America exports between 1.2 million and 1.5 million barrels of diesel per day, making it a critical source for import-dependent economies around the world. Industry experts have cautioned that halting those shipments could sharply tighten international markets and drive prices higher elsewhere.

David Fyfe, chief economist at energy consultancy Argus Media, warned that cutting off American supply would likely send international prices soaring — a counterintuitive outcome given that the stated aim of the policy is to shield US consumers from high costs.

The pressure on prices has been building for months. Petrol and diesel costs worldwide surged after the outbreak of the US-Israel war in Iran in February. The subsequent closure of the Strait of Hormuz — a chokepoint that normally carries roughly one-fifth of the world's oil and gas — has driven up the cost of refined products derived from crude.

An export ban from Russia, another major diesel supplier, has compounded the strain on global markets, leaving buyers with fewer alternative sources and little room to absorb further disruptions.

In the UK, the impact has been stark. Average diesel pump prices reached an all-time high this week at 199.79p per litre, according to figures from motoring organisation the RAC, up from 142.38p previously. Prices are now hovering just below the symbolic 200p-per-litre threshold.

Diesel presents a particular challenge for policymakers because it is harder to refine than petrol and is used extensively by the haulage industry and in agriculture. That makes demand highly inelastic — difficult to reduce even when prices rise sharply, since freight operators, farmers, and businesses have few immediate alternatives.

The UK's vulnerability is structural. Although the country's four refineries produce more than enough petrol to satisfy domestic demand, they do not generate sufficient diesel to meet national needs, leaving Britain heavily reliant on imports.

Figures from the Department for Transport show there were 15.1 million diesel vehicles on UK roads at the end of June, a decline from 15.7 million a year earlier. The number of diesel cars fell to 9.8 million from 10.4 million over the same period, reflecting a gradual shift away from the fuel — but the fleet remains large enough to sustain significant demand.

The diplomatic dimension is moving quickly. A European Commission spokesperson said there had been "lots of calls, lots of meetings" regarding the diesel situation, including high-level contacts with the US administration. The governing board of the International Energy Agency is scheduled to meet on Friday to assess the market.

Trump has framed the proposed export ban as a way to keep surplus diesel barrels inside the US, arguing this would lower domestic pump prices and offer immediate relief to drivers, truckers, and businesses ahead of the midterm elections. Critics counter that such a move could destabilise allied economies without guaranteeing meaningful relief at American forecourts.

For the UK, the coming days will test how effectively it can coordinate with European partners while managing domestic expectations. The government's message remains one of calm preparedness: reserves exist, supply chains are diversified, and contingency plans are in place — but the direction of prices, and the severity of any disruption, will depend largely on decisions taken in Washington.