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

The UK is in talks with US authorities over a possible stoppage of diesel exports and has begun preparing for a ban, according to Chancellor John Healey. The move comes as UK diesel prices have reached a new high, adding pressure to households and businesses already facing higher fuel costs. Healey said the government is also making provision to use domestic stocks if needed.

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He said the discussions with Washington are taking place against a backdrop of wider fuel market strain. US President Donald Trump has threatened to ban diesel exports, saying at the weekend that the idea was being considered very seriously. Healey said the UK was working closely with the Americans and that a diplomatic settlement in the Middle East would be the best way to ease the pressure on prices.

The average price of diesel in the UK has risen to 199.18p per litre, according to the RAC motoring organisation. That is above the previous peak of 191.5p recorded in June 2022 after Russia's full-scale invasion of Ukraine. Petrol prices are also still rising, with a litre currently costing 174.13p, underlining the broader impact of the latest supply pressures.

The price spike is linked in the report to disruption caused by the US-Israel conflict with Iran and by Russia's war with Ukraine. Over the past seven months, the Iran war has severely disrupted the production and transportation of wholesale oil across the region, pushing up the cost of fuels made from oil. The UK relies on the US for around a third of its diesel imports, so any export ban would likely tighten supply further and lift prices again.

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The issue has immediate political and economic significance because fuel costs feed into transport, logistics and the wider cost of living. Healey said he was very aware of those pressures as he prepared what he called a breathing space Budget on 28 October. He also noted that a freeze on fuel duty, first introduced by the Conservative government in 2022, is due to expire at the end of the year, with duty scheduled to rise by 3p in January and a further 2p in March.

What remains unclear is whether the US will go ahead with any export restriction and how quickly the UK could draw on its own stocks if supply is disrupted. The White House has been contacted for comment, and the situation may depend on both diplomatic developments and market conditions in the coming days. For now, the government is signalling that it is preparing for several possible outcomes while trying to limit further pressure on diesel prices.

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