UK Prepares Coordinated Fuel Reserve Release as Trump Threatens US Diesel Export Ban

Britain is holding discussions with its European Union partners about the possibility of releasing additional strategic fuel reserves, including diesel, should global supplies come under further strain, the BBC has learned. The talks reflect growing unease among European governments over a proposed American ban on diesel exports, a move that could ripple through international energy markets already stretched by geopolitical turmoil.

The discussions follow a warning from President Donald Trump that he is considering halting diesel shipments from the United States in an effort to bring down record fuel prices for American consumers. Trump confirmed at the weekend that his administration was examining the idea "very seriously," framing it as a way to shield US drivers, truckers, and businesses from painful costs at the pump ahead of the midterm elections.

Energy Minister Martin McCluskey joined a call with European counterparts on Thursday to discuss the potential consequences of such a ban. According to a source familiar with the discussions, it was considered prudent to prepare a coordinated response alongside other nations, including EU member states. The same source noted, however, that European reserves remain from a joint release of strategic fuel stocks carried out earlier in the year.

The US occupies a pivotal position in the global diesel market, exporting between 1.2 million and 1.5 million barrels per day. Analysts have cautioned that cutting off those shipments would likely send international prices soaring, as buyers in Europe, Latin America, and elsewhere scramble to replace lost volumes. David Fyfe, chief economist at Argus Media, warned that an export ban would probably cause international prices to skyrocket rather than deliver sustained relief to American consumers.

The pressure on prices has been building for months. Petrol and diesel costs worldwide have climbed sharply since the outbreak of the US-Israel war in Iran in February. The closure of the Strait of Hormuz, a chokepoint that normally carries roughly a fifth of the world's oil and gas, has driven up the cost of refined products. An export ban from Russia, another major diesel supplier, has compounded the squeeze.

In the UK, the impact is already visible at the forecourt. Diesel prices reached an all-time high this week, with the latest RAC figures putting the average at 199.79p per litre, up from 142.38p. The looming milestone of 200p per litre underscores how quickly costs have escalated for motorists and businesses alike.

Diesel presents a particular challenge because it is harder to refine than gasoline and is deeply embedded in the haulage and agricultural sectors, making demand difficult to curb. The UK is heavily reliant on imports to bridge the gap. While the country's four refineries produce more than enough petrol to satisfy domestic demand, they do not generate sufficient diesel for the nation's needs. Government figures 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, with diesel cars falling from 10.4 million to 9.8 million over the same period.

A government spokesperson sought to reassure the public, saying: "We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry." Ministers have stressed there is no cause for alarm about potential shortages, though they acknowledge prices are expected to rise further. Officials pointed to the earlier coordinated release of strategic stocks as evidence that contingency plans are in place.

Across the Channel, the European Commission confirmed it is monitoring the situation closely. A spokesperson said there had been "lots of calls, lots of meetings" on the diesel issue, including high-level contacts with the US administration. The governing board of the International Energy Agency is scheduled to meet on Friday, a gathering that will give member countries a forum to assess the threat and weigh collective action.

Trump's proposed ban is rooted in domestic politics as much as economics. Keeping surplus barrels inside the US, his argument runs, would lower pump prices at home and offer immediate relief to voters. But energy economists caution that the global market is interconnected, and that a unilateral move could backfire by destabilising allied economies without guaranteeing lower prices in the US.

For the UK, the stakes are considerable. Diesel powers the lorries that stock supermarkets, the tractors that harvest crops, and the vans that deliver goods. Even a modest supply disruption could feed through to consumer prices and economic activity. That explains why London is coordinating with Brussels rather than acting alone. For now, the government's message is one of readiness rather than alarm, but the talks signal that policymakers are preparing for a scenario in which the global diesel market tightens further.