The UK government is currently engaging with US authorities regarding a potential halt on diesel shipments while simultaneously preparing domestic reserves for a possible ban, according to Chancellor John Healey.
Surging global fuel prices are tied to the US-Israel conflict with Iran and Russia’s campaign in Ukraine, prompting US President Donald Trump to remark over the weekend that his administration is evaluating a diesel export restriction very seriously.
Addressing reporters during the annual Labour Party Conference in Liverpool, Healey acknowledged that British diesel costs have reached extreme levels, noting that officials are maintaining close contact with American counterparts.
Healey emphasized that diplomatic efforts and ending the conflict with Iran remain the primary objectives to alleviate the pressure, adding that the government is also making provisions and utilizing domestic reserves. 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. What we need is a settlement in the Middle East, healey said: “Fundamentally.
The UK relies on the US for approximately one-third of its diesel imports, meaning any restriction would drive pump prices significantly higher.
American officials indicate that Trump is weighing the measure to lower domestic consumer costs ahead of upcoming midterm elections, though the White House has been approached for comment. US sources suggest that Trump is considering a ban to attempt to bring down prices for domestic consumers ahead of the critical midterm elections.
Data from the RAC motoring organization shows the average price for a litre of diesel climbed to 199.18p, eclipsing the previous peak of 191.5p set in June 2022 following Russia’s full-scale invasion of Ukraine.
Petrol costs are also climbing, with a litre currently priced at 174.13p as wholesale oil production and regional transportation face severe disruptions from the seven-month war involving Iran.
The RAC noted that diesel pricing has moved into uncharted territory, highlighting Britain’s vulnerability to distant geopolitical events. According to the RAC, Diesel prices had entered “uncharted territory” and served as a reminder of “just how exposed the UK is to events occurring far away”.
Healey stated he is highly conscious of these living cost pressures while drafting an upcoming Budget scheduled for October 28, which he termed a breathing space.
A fuel duty freeze originally introduced by the Conservative administration in 2022 is set to expire by year’s end, with scheduled increases of 3p in January and an additional 2p in March.
