The proposed diesel export ban by US President Donald Trump could ease fuel costs for American drivers but put further pressure on prices in the UK and Europe. Trump has said he may ask European countries to release some of their diesel reserves as his administration considers restricting US exports amid rising global fuel costs.
The proposal comes as UK diesel prices reach record levels, with the war involving Iran putting pressure on supplies of refined fuels. Diesel prices on British forecourts are hovering just below 200 pence per litre, according to motoring organisation the RAC.
The United States is a major supplier of diesel to international markets, exporting between 1.2 million and 1.5 million barrels per day. A restriction on those exports could significantly affect countries that depend on American supplies, including the UK.
Diesel Export Ban: What Trump Has Said
Trump was asked on Thursday whether he might call on European countries to release some of their diesel reserves in response to the pressure on fuel supplies.
“We may do that. They have some diesel,” the US president said.
His comments followed a social media statement from US Treasury Secretary Scott Bessent, who urged European countries to make additional diesel supplies available immediately.
Bessent argued that American farmers, truckers and businesses should not have to bear the full burden of rising fuel prices. Restricting exports could leave more diesel available in the domestic US market, potentially reducing prices for American consumers and businesses.
However, energy experts have warned that limiting exports from one of the world’s important diesel suppliers could push international prices higher unless other countries can secure alternative supplies.
The proposal also comes as Trump prepares to campaign for Republicans ahead of the November midterm elections, with control of the House of Representatives and Senate at stake.
UK Diesel Prices Rise as Supply Concerns Grow
The UK could be particularly exposed to a US diesel export ban because it relies heavily on imported fuel. More than half of the country’s diesel is imported, with 31% of those imports coming from the United States.
The RAC’s latest figures put average UK diesel prices at 199.79p per litre, compared with 142.38p previously. The increase comes as global oil markets face pressure from disruptions linked to the conflict involving Iran.
UK Energy Minister Martin McCluskey held discussions with European counterparts on Thursday about the potential consequences of an American export restriction.
A source familiar with the discussions told the BBC that preparing a coordinated response with other countries, including European Union members, was prudent. However, the source added that Europe still had reserves remaining from a coordinated release of strategic fuel stocks earlier in the year.
A UK government spokesperson said: “We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry.”
The government has also stressed that there is no reason to be concerned about potential diesel shortages, although prices could rise further.
Iran War and Global Fuel Supplies Add Pressure
The diesel export debate is unfolding amid wider disruption to international energy markets. Petrol and diesel prices have risen sharply since the US-Israel war in Iran began in February, while the closure of the Strait of Hormuz has placed additional pressure on supplies.
The strategic waterway typically carries around a fifth of the world’s oil and gas. Disruption to shipments through the strait affects the movement of energy supplies and contributes to higher prices for products derived from crude oil.
An export ban imposed by Russia, another major diesel supplier, has added to the pressure on international markets.
China could also contribute to tighter supplies. Chinese refiners have reportedly halted October exports of some fuel products as Beijing prioritises domestic demand. The BBC contacted the Chinese embassy in Washington for comment.
A European Commission spokesperson said there were “lots of calls, lots of meetings” taking place about the diesel situation, including discussions with senior contacts in the US administration.
David Fyfe, chief economist at Argus Media, warned that cutting off American diesel supplies would likely cause international prices to rise sharply.
Why Diesel Demand Is Difficult to Reduce
Diesel is more difficult to refine than gasoline and is essential to industries such as haulage and agriculture. These sectors rely heavily on the fuel, making it difficult to reduce consumption quickly when prices rise.
The UK faces an additional challenge because its domestic refineries produce enough petrol to meet demand but do not manufacture sufficient diesel to cover the country’s needs.
According to the Department for Transport, there were 15.1 million diesel vehicles on UK roads at the end of June, down from 15.7 million a year earlier. The number of diesel cars fell from 10.4 million to 9.8 million over the same period.
If the US introduces a diesel export ban, countries that depend on American fuel could face greater competition for alternative supplies. The potential effect on prices will depend on how international suppliers and governments respond to the disruption.
For now, the UK government says its fuel supply remains resilient, while discussions continue between European countries and US officials. However, with diesel prices already at record levels, any further restrictions on international supplies could add to the pressure on motorists and businesses.