Donald Trump's threat to ban diesel exports risks pushing prices up even higher in the UK. Chancellor John Healey said Britain is in talks with the US over the potential stoppage, adding that 42 days' worth of fuel meets the stocks the UK needs.
Record diesel prices
The average price of a litre of diesel stood at 199.18p on Monday, according to figures from the RAC. This is 56.8p more expensive than at the start of the US-Iran war on February 28 this year, when a litre averaged 142.38p.
The price also breaks the record of 199.09p reached in June 2022 in the wake of Russia's invasion of Ukraine earlier that year.
US supply concerns
Mr Trump has threatened a diesel export ban to tackle prices, which have also been rising in the US. The US leader voiced support for a ban last week, but his Energy Secretary, Chris Wright, rejected a total export stoppage.
The United States is one of the UK's most important sources of diesel, as domestic refining of the fuel has shrunk. Britain has four oil refineries left in operation after the closure of crude oil processing facilities at Lindsey and Grangemouth last year.
Government figures show 58% of white diesel imports last year were supplied by the US and the Netherlands alone.
Global supply crunch
Internationally, the diesel market is suffering a severe supply crunch, with exports from the Middle East between March and August at about half the level they were over the same period in 2025. Russian diesel exports have dropped sharply after many of the country's oil refineries were targeted by Ukraine. A key facility near Moscow was damaged earlier this month as part of a huge drone operation.
This has led to extra demand for fuel from other diesel-exporting countries, such as the US, causing wholesale prices to rise.
Government response
Asked about Mr Trump's potential export ban, Mr Healey told ITV: "It's a concern. But we're talking. We always talk very closely with the US, especially on trade matters.
"We're also talking, of course, to the US about what will help deal with this problem at its roots, which is solving the Middle Eastern conflict."
He said a peace plan that includes a military mission to help secure the Strait of Hormuz under a peace plan will do more than anything else to help bring down prices, relieve the cost of living and the cost of doing business.
On whether he will consider extending the current 5p cut in fuel duty beyond the end of this year, the Chancellor said he will announce that decision in the Budget on October 28.
