Britain and its European allies are discussing tapping into emergency stockpiles of diesel after Donald Trump threatened a ban on US exports.
Officials from the UK, Germany, France, Italy and Ireland held crunch talks on Thursday morning to discuss the possible need to release their emergency stocks.
President Trump had reportedly told Germany and France to draw down emergency diesel inventories to help to ease global fuel prices, as he threatened to cut off American supply.
The US president is said to be frustrated with the two countries for not fully following through on earlier commitments to release emergency oil and petroleum stocks.
His ongoing war with Iran, along with the Russian-Ukraine conflict, continues to choke off global oil supplies.
A US official told Reuters: “It is in Europe’s best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers.”
US energy secretary Chris Wright told reporters on Wednesday that the US administration expected announcements soon from Europe about new diesel supplies.
“We've lost some diesel exports from the Middle East, although we're restoring those, and we've lost diesel exports from China,” he said. “So that's a lot of interruptions.”
President Trump is considering the potential ban to bring down US fuel prices ahead of November's midterm elections, but it is not known whether the UK would be included.
British officials are in talks with the US over the possible ban on exports, and Andy Burnham has said he would seek an exemption for the UK if it came to it.
Chancellor John Healey said he was taking the threat “very seriously”, telling BBC: “We're also making the provision that we may need to and we have our own stocks in the UK.
“We work very closely with the Americans,” the chancellor 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.”
Diesel prices reached an all-time high in the UK this week, as thousands of forecourts charged more than £2 a litre.
Prices have risen steadily in recent weeks and, on Monday, overtook the previous all-time peak of 199.09p set in June 2022.
Britain holds around 42 days’ worth of emergency diesel stockpiles and relies on the US for around a third of its diesel imports.
Europe has become increasingly dependent on US fuel after banning Russian imports over the invasion of Ukraine, with the crisis intensifying amid Iran’s effective blockade of the Strait of Hormuz.
Russian diesel exports have also dropped as a result of Ukraine ramping up its attacks on oil refineries, which has led to extra demand for fuel from other diesel-exporting countries.
The Independent has approached the Treasury and the Department for Energy Security for comment.
