Donald Trump has said he may ask European countries to release some of their diesel reserves as he considers banning US exports of the fuel.
The president’s comment comes after diesel prices hit record highs on UK forecourts this week, as the Iran war continues to put pressure on the supply of refined fuels.
The UK is heavily reliant on imported diesel from the US. But with US voters also facing higher fuel costs ahead of the midterm elections in November, Trump has threatened to restrict diesel exports.
The UK has been discussing the US supply threats with the EU which is holding a meeting on Friday on the issue.
Banning exports would flood the US market with diesel, and could bring prices down significantly for American drivers.
But experts warn such a ban would put further pressure on diesel prices in other countries, unless they can access further supplies.
The US is a vital supplier of diesel to the world, exporting between 1.2 and 1.5 million barrels per day, with most of it going to Latin America.
European countries including France, the Netherlands and the UK, also import a significant amount from the US following the reduction in Russian and Middle Eastern sources of diesel.
Russia’s invasion of Ukraine led to sanctions, diverting Russian sales away from Europe. More recently Ukrainian attacks on Russian refining capacity has had a knock-on effect on global supply.
The US-led war on Iran has constrained the flow of both crude oil and refined diesel from that region.
On Thursday, Trump was asked whether he would call on European countries to release some of their own diesel reserves.
“We may do that. They have some diesel,” he said.
An earlier post from US Treasury Scott Bessent on social media urged Europe to get ready to release some of their own diesel supplies immediately, arguing that US farmers, truckers, and businesses “should not be left carrying the burden” as prices soar.
Diesel prices in the UK hit record highs this week and are hovering just under 200p per litre, according to motoring organisation the RAC.
Over half of the UK’s diesel is imported, with 31% of the imports coming from the US.
The Netherlands and Belgium together provide more than a third of UK diesel imports.
UK Energy Minister Martin McCluskey was on a call with European counterparts on Thursday to discuss the potential ban.
A source familiar with the discussions told the BBC it was prudent to prepare a co-ordinated response with other countries, including those across EU, but added that there were still European reserves left from a coordinated release of strategic fuel stocks earlier in the year.
“We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry,” a government spokesperson said.
The government has stressed that there is no cause for concern about potential diesel shortages, though prices are expected to rise further.
