Millions of UK diesel drivers face the prospect of pump prices soaring to £2.50 a litre if US President Donald Trump follows through on a reported export ban, industry experts have warned.
The nationwide average for diesel has already reached 198.32p per litre, according to RAC figures, close to the all-time high of 199.09p. In some areas, forecourts have breached the £2 mark, with reports of prices as high as 219.9p a litre.
Diesel near record high
The average price of unleaded now stands at 173.60p per litre, having risen nearly 12p this month alone and more than 40p since the Iran War began in late February. Diesel has risen 14.5p this month and 55p since February 28.
RAC head of policy Simon Williams said: “The average price of diesel is teetering on the brink of a new all-time high at 198.32p, taking the cost of a 55-litre fill-up for a family car to £109.”
He added: “The record of 199.09p will almost certainly be surpassed over the weekend as retailers continue to pass on the increases they’re seeing when they buy new supply. Diesel is up 14.5p this month alone and 55p since February 28.”
US export ban risk
The UK’s reliance on US diesel imports poses a new risk after reports that President Trump is considering a ban on diesel exports. The move is seen as an attempt to cool pump prices in the US ahead of the mid-term elections, where a national average of almost $7 a gallon is a major concern for voters.
Ashley Kelty, a research analyst at investment bank Panmure Liberum, warned that if a ban were imposed, it was “not unreasonable to think £2.50 a litre - or higher - diesel is on its way”.
He told the Daily Mail: “With the mid-terms fast approaching, Trump is keen to find any measure that may help lower prices for voters. But while this plan has the right optics, it’s not one that has been considered in depth given the inherent economic weaknesses that could see the policy actually making things worse.”
UK vulnerability
Howard Cox, founder of FairFuelUK, said: “The UK is dangerously exposed on diesel. We import the vast majority of what we use, and almost 70% of it comes from just three places — the US, the Netherlands and Belgium. When those supply routes tighten. British drivers get hammered overnight. No other major economy is this dependent, this vulnerable, or this quick to pass global shocks straight to the pumps.”
The spike in prices follows a sharp rise in oil prices amid the ongoing Middle East conflict, with the cost of a barrel of oil hitting $106 after hovering around $100 for two weeks. Williams said: “A significant drop in the price of oil is badly needed but this seems unlikely without the US and Iran striking a deal.”
