The UK government is preparing for a possible ban on diesel exports from the US as fuel prices hit record highs amid tensions in the Middle East and ongoing conflict in Ukraine. Chancellor John Healey told BBC News that talks with US officials are underway and that the UK is making plans to manage any disruption.
Diesel prices in the UK climbed to 199.33p per litre on Monday, according to the RAC motoring organisation. This surpassed the previous peak of 199.09p recorded in June 2022 after Russia’s full-scale invasion of Ukraine. Petrol prices also remain high, with a litre costing 174.23p.
The surge in prices comes as supply pressures mount. The US depends heavily on Middle Eastern oil, and the recent escalation of conflict between Israel and Iran has severely disrupted oil production and transportation in the region. Russia’s war with Ukraine adds further strain to global fuel supplies.
US President Donald Trump has threatened to ban diesel exports to try to ease domestic prices ahead of the midterm elections. “We’re thinking about it very seriously,” he said over the weekend. The move would affect the UK directly, which imports about a third of its diesel from the US.
Healey acknowledged the strain on UK consumers. “Our diesel prices are extreme,” he said at the Labour Party Conference in Liverpool. He added that the government is working closely with the US and preparing its own stockpiles in case a ban takes effect.
“We work very closely with the Americans,” Healey said. “In the end, we’re also working with the Americans where we can try and put in place what will solve this, or at least significantly ease it, which would be a diplomatic settlement [and] an end to the fighting with Iran.”
The UK’s fuel duty freeze, introduced by the Conservative government in 2022 to help ease the cost of living, is set to expire at the end of the year. Duty is scheduled to rise by 3p per litre in January and a further 2p in March. Healey called the upcoming Budget on 28 October a “breathing space” to address these pressures.
“Fundamentally, what we need is a settlement in the Middle East,” Healey said. “We need an easing of the pressure of costs on business, the costs on households and on ordinary families that we see at the pumps in the most extreme level today for diesel.”
The RAC warned that diesel prices have entered “uncharted territory” and serve as a reminder of the UK’s exposure to events far beyond its borders. The ongoing conflicts in the Middle East and Ukraine have pushed wholesale oil costs higher over the past seven months, which filters down to consumers.
The BBC has reached out to the White House for comment on the potential export ban.
For now, the UK awaits a resolution in the Middle East that could ease the pressure on fuel prices. Until then, the government is bracing for the impact of any US export restrictions while managing its own reserves to avoid a sharp spike at the pumps.
According to Joy Online.
