The UK government is actively negotiating with US officials to prevent a potential ban on diesel exports, a move that could further exacerbate rising fuel costs in Britain. Chancellor John Healey confirmed that the UK is preparing for the possibility of such a restriction, which US President Donald Trump has indicated is being considered to lower domestic fuel prices ahead of upcoming midterm elections.
Diesel prices in the UK hit a record high of 199.33p per litre on Monday, according to data from the RAC. This surge is largely attributed to global supply chain disruptions linked to the ongoing conflict between Israel and Iran, as well as the war in Ukraine. Because the UK relies on the United States for approximately one-third of its diesel imports, a trade restriction would likely trigger further price increases for British consumers.
Addressing the situation at the Labour Party Conference in Liverpool, Healey described the current fuel costs as "extreme" and emphasized the government's dual approach of diplomatic engagement and internal contingency planning. "We're also making the provision that we may need to and we have our own stocks in the UK," Healey stated. He noted that the government is advocating for a diplomatic resolution to the conflict in the Middle East as the most effective way to stabilize global energy markets.
The Chancellor also addressed the broader cost-of-living crisis, noting that he is preparing a "breathing space" Budget scheduled for October 28. This comes as the UK faces the scheduled expiration of a fuel duty freeze at the end of the year, with planned increases of 3p in January and 2p in March. The White House has yet to provide a formal comment on the potential export restrictions.
Source: BBC News
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