UK prepares for possible US diesel export ban as fuel prices hit record

The UK is in talks with US authorities over a potential ban on diesel exports from the United States and is preparing for possible disruption, Chancellor John Healey told BBC News.

The UK relies on the US for about a third of its diesel imports. Any export ban could push prices even higher as fuel costs rise globally amid the conflict involving Iran, Israel and the war in Ukraine.

US President Donald Trump said at the weekend that he was "thinking about it very seriously" when asked about a possible diesel export ban.

Healey said the UK was working closely with US authorities and was making preparations in case a ban was introduced. He also said the UK had its own fuel stocks.

"We work very closely with the Americans," Healey said on the sidelines of the Labour Party Conference in Liverpool.

He said the UK was also working towards a diplomatic settlement and an end to the fighting with Iran, which he described as a way to "significantly ease" the pressures on fuel prices.

The average UK diesel price reached a record 199.33p per litre on September 28, according to the RAC, surpassing the previous high of 199.09p recorded in June 2022 after Russia launched its full-scale invasion of Ukraine.

Petrol prices have also continued to rise, reaching 174.23p per litre.

The RAC said diesel prices had entered "uncharted territory", highlighting the UK's exposure to events overseas.

US sources suggest Trump is considering an export ban in an effort to reduce prices for US consumers ahead of the midterm elections. The BBC said it had contacted the White House for comment.

Healey said he was "very aware" of the cost-of-living pressures as he prepared a Budget for 28 October.

A fuel duty freeze introduced by the Conservative government in 2022 is due to expire at the end of the year. Fuel duty is scheduled to rise by 3p in January and another 2p in March.

"Fundamentally, what we need is a settlement in the Middle East," Healey said, calling for relief from rising costs for businesses and households.

By Aghakazim Guliyev