Motorists could face another huge hike in fuel prices if proposals overseas come into effect. Analysts have warned that if Donald Trump brings in a diesel export ban, it would have a knock-on effect on British drivers.
The US President is understood to be looking at a 90-day ban on US diesel exports in an effort to bring down energy prices across America. That could severely impact customers, with petrol and diesel users in the UK potentially facing price increases at the pump up to £3 per litre, reports The Express.
UK diesel imports at risk
A vast proportion of the UK’s diesel imports is sourced from the US, and any export bans would risk shortages, driving up the cost of fuel. Diesel is expected to hit an all-time high of £1.99 a litre this week, and experts suggest there could be £3 per litre prices at the pump before too long.
Ashley Kelty, research analyst at investment bank Panmure Liberum, has warned that pump prices could head “north of £2.50, £3” per litre. He also told The Telegraph that if a Trump export ban came into effect, it could take only “a few weeks” for Britain to see its diesel stocks run down.
RAC warning on pump prices
RAC head of policy, Simon Williams, warned that prices would soon jump above £2 per litre and keep climbing. RAC Fuel Watch indicates that the price of super-unleaded petrol and diesel were still “likely to rise”.
Simon said: “With concerns over the global supply of wholesale diesel, the question facing drivers is no longer 'when will the average price exceed 199.09p?' but 'how far above £2 a litre will it climb?'. Only a sudden and sustained drop in the cost of oil can prevent an average diesel pump price of over £2 a litre happening, which sadly appears highly unlikely.”
Government response and market reaction
A DESNZ spokesperson said: "Forecourts in the UK are being supplied with petrol and diesel as normal and we have a diverse and resilient supply."
Mr Trump has reportedly said that a Politico report saying he is considering introducing a 90-day ban on US exports, stopping diesel being sent abroad, is “fake news”. Following the report, the price of European diesel is said to have jumped and US prices fallen by a similar amount.
