The UK government is preparing for a possible US ban on diesel exports and is in talks with Washington over the potential disruption, Chancellor John Healey has confirmed.
Healey told BBC News that discussions with US authorities were ongoing, while the UK was also making preparations should Washington move ahead with restrictions.
“We’re also making the provision that we may need to and we have our own stocks in the UK,” Healey said.
His comments came as diesel prices in the UK reached a record high on Monday, with the average price hitting 199.33 pence per litre, according to the RAC. That surpassed the previous record of 199.09 pence set in June 2022 following Russia’s full-scale invasion of Ukraine.
Petrol prices have also continued to rise, reaching an average of 174.23 pence per litre.
The UK could be particularly exposed to a US export ban as around one-third of its diesel imports come from the US. Any disruption could put further pressure on already elevated fuel prices.
US President Donald Trump said over the weekend that his administration was “thinking about” banning diesel exports, with US sources suggesting the move is being considered partly as an attempt to reduce domestic fuel prices ahead of the midterm elections.
The White House has been contacted for comment.
Healey said the UK was working closely with Washington, including efforts to seek a diplomatic settlement to the conflict involving Iran and an end to the fighting.
Fuel markets have been under pressure amid disruptions to oil production and transportation linked to the conflict in the Middle East, alongside continued disruption caused by Russia’s war in Ukraine.
The RAC said diesel prices had entered “uncharted territory”, highlighting the UK’s exposure to international events affecting fuel supplies.
Healey said he was aware of the pressure on households and businesses as the government prepares its Budget on October 28, which he described as a potential “breathing space” for the economy.
The UK’s current fuel duty freeze, introduced by the previous Conservative government in 2022, is due to expire at the end of the year. Under the existing schedule, fuel duty is set to rise by 3p per litre in January and another 2p in March.
Healey said easing pressure on businesses and households ultimately depended on reducing the wider costs affecting fuel markets, adding that a settlement in the Middle East was needed to ease pressure at the pumps.
