Britain faces a nationwide diesel crisis this winter if Donald Trump forces Europe to release emergency fuel stocks before US mid-term elections. The US President is piling pressure on Western countries to act to bring down energy prices, which are spiking as his Iran war continues to rage.
Threat to ban US diesel exports
He has threatened to ban US diesel exports unless his traditional allies comply, potentially wreaking more havoc and causing a fuel crisis in the UK. But there is alarm that releasing reserves now could leave the continent at the mercy of supply shocks in the coming months.
Many British garages are already charging £2 a litre, and experts warn they could hit £3 if the US follows through on threats, potentially bringing motorists to a standstill.
UK reserves at just 40 days
Britain holds only 40 days’ worth of diesel reserves, whereas some other nations have more than 200 days. A Whitehall source said: “These reserve stocks are there to act as a buffer against supply shortages. They are not there to bring fuel prices down.”
The US is believed to have asked the European Union to release 120 million barrels of diesel in the next six months. US Energy Secretary Chris Wright said on Thursday that the US administration expected announcements soon from Europe about new diesel supplies.
Pressure on European partners
Treasury Secretary Scott Bessent said European states should release diesel reserves “immediately.” He said: “Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions.”
Mr Trump has said he is “very seriously” considering restrictions on diesel exports. The US is the biggest exporter in the world. Andy Burnham has indicated he is lobbying Mr Trump against such an embargo.
Impact on UK supplies
Around a quarter of the UK’s supplies typically come from America. Diesel has been particularly hard-hit by the chaos in the Middle East. Even before that, Europe had become increasingly dependent on US fuel after banning Russian imports over Vladimir Putin’s full-scale invasion of Ukraine.
Washington was accused of deploying “brazen negotiating tactics” by Whitehall insiders. They warned that bowing to US demands could lead to a “really, really bad” supply shortage this winter. There are concerns that the Red Sea could be effectively closed by Houthi fighting action, sparking another wave of energy shocks.
Motoring organisations have urged the Government to extend the current 5p cut in fuel duty beyond the end of this year when it is currently scheduled to be reversed. A decision on what happens to fuel duty is due to be announced by Chancellor John Healey in his Budget speech on October 28.
Transport minister Keir Mather insisted the UK had a wide range of sources of fuel. He said: “I want to reassure people this morning that the United Kingdom has got a diverse range of supply when it comes to diesel. We have resilience built into our system for that reason.”
