The UK is reportedly at risk of major diesel shortages if Donald Trump bans exports of fuel from the US. A report by Times journalist Oliver Hoult revealed that UK ministers are anxious over whether Britain could handle a ban, with Trump saying he is considering the drastic measure as the price of fuel in the US continues to stay high.
Trump's warning on fuel exports
Speaking to Fox News while attending a golf tournament, the President of the US said: "We're thinking about it very seriously. That can oftentimes lead to a little bit of an increase on gasoline for cars, so we're looking at it very seriously. We may do it."
The US is the world's largest diesel exporter, with the UK one of many countries to remain extremely reliant on fuel coming across the Atlantic. With the rising price of diesel in the US one of the major issues impacting Trump and the Republicans at the upcoming Midterm elections, many inside and outside the party believe a drastic decision may be made.
Possible restrictions and record prices
According to a Politico report, Trump is genuinely considering an all-out ban on exports lasting at least 90 days, while US Energy Secretary Chris Wright stated that the White House is considering restrictions rather than an outright ban, as per US news outlet CNBC.
The dramatic rises have been caused in part by global conflict, with the US's deeply unpopular war with Iran perhaps the biggest factor. The price of diesel in the US currently sits at around $6.50 a gallon, with that figure hitting a record high of $6.53 on Tuesday (September 22).
The UK has been similarly impacted by the shortages globally, with the price of diesel currently at a record high figure of just below £2 a litre or £7.57 a gallon. Were the US to withdraw exports to the UK, that figure would likely rise further, putting significant strain on businesses and motorists looking to fill their tanks. Rising fuel costs often sees price rises in many other sectors too, as companies look to pass price increases onto consumers.
Impact on European prices
Benedict George, head of European product pricing at Argus Media, told CNBC that any forms of US restrictions would likely send European prices to a "new unprecedented level."
He explained: "It's really important to be clear that there is no measure yet and it's very unclear whether there will be a measure at all and what the measure will be even if there is a vision."
