Donald Trump has said he may ask European countries to release some of their diesel reserves as he mulls a ban on US exports of the fuel amid a global shortage.
The comments followed his Treasury Secretary Scott Bessent urging for Europe to immediately ready and release such supplies. “American farmers, truckers, and businesses should not be left carrying the burden” as prices soar, he argued.
The US has threatened to restrict diesel exportsamid surging costs due to the war in Iran. The issue is top of mind for US voters ahead of the crucial midterm elections.
On Thursday, Britain held talks with European partners about the potential release of diesel reserves in response to any ban.
The US is a vital supplier of diesel to the world, exporting between 1.2 and 1.5 million barrels per day, with experts warning a ban on shipments abroad could put further pressure on prices in other countries.
“We’re thinking about it very seriously,” Trump said of an export ban at the weekend.
On Thursday Trump added that he may ask European countries to release some of their diesel reserves, while Bessent said they should do so “immediately”.
“Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions,” Bessent said in a post on social media.
The plans come weeks ahead of November elections in the US, where control of Congress will be up for grabs. The president is set to travel across the US campaigning for Republicans in hopes of keeping control of the House and Senate.
Diesel prices in the UK hit record highs this week and are hovering just under 200p per litre, according to motoring organisation the RAC.
Britain’s Energy Minister Martin McCluskey was on a call with European counterparts on Thursday to discuss the potential ban.
A source familiar with the discussions told the BBC it was prudent to prepare a co-ordinated response with other countries, including those across EU, but added that there were still European reserves left from a coordinated release of strategic fuel stocks earlier in the year.
“We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry,” a government spokesperson said. The government has stressed that there is no cause for concern about potential diesel shortages, though prices are expected to rise further.
A European Commission spokesperson said today that there were “lots of calls, lots of meetings” taking place on the diesel situation, including with “high level contacts” in the US administration.
Prices of petrol and diesel globally have skyrocketed since the outbreak of the US-Israel war in Iran in February. The closure of the vital Strait of Hormuz, which typically transports around a fifth of the world’s oil and gas, has pushed up the price of products made from oil.
An export ban from Russia, also a major supplier of diesel, has added to the pressure on prices.
Trump has argued that keeping any surplus barrels of diesel in the US would lower pump prices domestically, offering immediate relief to drivers, truckers, and businesses ahead of the midterm elections.
But David Fyfe, chief economist at Argus Media, said cutting off American supply would likely cause international prices to skyrocket.
Diesel prices have hit an all-time high in the UK, with the latest RAC figures showing average pump prices at 199.79p per litre, up from 142.38p
Diesel is harder to refine than gasoline and, because it is used by the haulage industry and in agriculture, it is very difficult to reduce demand.
The UK is heavily reliant on imports. Although the four refineries in the UK make more than enough petrol to meet demand, they do not make enough diesel for the country’s needs.
There were 15.1 million diesel vehicles on UK roads at the end of June, according to the Department for Transport. That is a drop from 15.7 million a year before.
There were 9.8 million diesel cars, down year on year from 10.4 million.
By BBC News
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