UK Engages in Talks with US Over Potential Diesel Export Ban

The UK is in discussions with US authorities regarding a potential stoppage of diesel exports, as stated by Chancellor John Healey in an interview with BBC News. Diesel prices in the UK reached a new high on Monday, attributed to supply pressures stemming from the US-Israel conflict and Russia's war with Ukraine. Fuel prices are rising globally, and US President Donald Trump has indicated a serious consideration of a ban on diesel exports, stating, "We're thinking about it very seriously." Healey acknowledged that UK diesel prices are "extreme" and mentioned that the government is preparing for a possible ban while maintaining its own diesel stocks. Speaking at the Labour Party Conference in Liverpool, Healey emphasized the close collaboration with American officials to address the situation, suggesting that a diplomatic resolution could help ease the crisis. The UK relies on the US for approximately one-third of its diesel imports, and a ban could further escalate prices. US sources indicate that Trump is contemplating the ban to reduce domestic prices ahead of the midterm elections. The White House noted that no official policy decisions have been made, but Trump aims to lower prices at the pump and is evaluating various options. As of Monday, the average price for a litre of diesel in the UK reached 199.33p, surpassing the previous high of 199.09p set in June 2022. Petrol prices are also on the rise, currently at 174.23p per litre. The ongoing conflict in Iran has significantly disrupted oil production and transportation, leading to increased fuel prices. The RAC reported that diesel prices have entered "uncharted territory," highlighting the UK's vulnerability to international events. Healey expressed awareness of the cost of living pressures, preparing for a "breathing space" Budget on 28 October. A freeze on fuel duty, initially implemented by the Conservative government in 2022, is set to expire at the year's end, with scheduled increases in January and March. Healey stated, "Fundamentally, what we need is a settlement in the Middle East. We need an easing of the pressure of costs on business, the costs on households and on ordinary families that we see at the pumps in the most extreme level today for diesel."