Britain and European allies discuss emergency diesel stockpiles after US export threat

Britain is in talks with European allies over whether to release emergency diesel stockpiles after the Trump administration threatened to cut off US supplies of the fuel. Ministers held calls on Thursday with counterparts from the European Commission, Germany, France, Italy and Ireland to discuss the possible drawdown of reserves. The discussions came after Washington told Germany and France to release their stockpiles to help ease rising global energy prices or face a US export ban.

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The warning has added pressure to already strained fuel markets. A US official said it was in Europe's best interest to work with the United States as it pursued ways to boost refined-product supply and lower costs for consumers. The Trump administration has been frustrated with France and Germany, which it believes have not followed through on commitments to release oil and petrol stocks.

It is unclear whether the UK would be included in any ban, but officials said the loss of US supply would push prices higher. The UK is particularly exposed because it does not refine enough diesel to meet domestic demand. About a third of UK diesel imports last year came from the United States, according to the supplied report.

The average price of a litre of diesel in the UK reached a new record of 199.72p on Wednesday, and the chancellor has described diesel prices as extreme. The government has also been in discussion with the US over trying to prevent a ban, underlining the immediate commercial stakes for motorists and businesses. The talks come at a time when Europe is already relying on a delicate balance between domestic refining, reserve stocks and imports from the global market.

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Europe produces about 70% of the diesel it consumes from domestic refineries, but experts fear that competition for cargoes would still push up prices if supplies tighten further. Releasing reserves could ease short-term pressure, but it would also reduce the buffer available if the market worsens again. That makes the issue significant not only for fuel prices, but also for wider energy security and transatlantic trade relations.

The broader backdrop is a sharp rise in oil prices linked to the war in Iran, which has disrupted energy flows through the Strait of Hormuz. Before the war, Brent crude traded at about $72 a barrel in February, but it was above $101 on Thursday. That increase has fed through into refined products such as diesel, intensifying pressure on governments to respond.

The current talks show how quickly a supply dispute can become a political issue across both sides of the Atlantic. What remains unclear is whether the United States will proceed with any export ban, and whether Britain or the EU countries involved would actually release reserves. It is also not known how much stock could be drawn down, or how quickly that would affect prices at the pump.

#diesel #emergencyreserves #fuelprices #EuropeanCommission #UnitedKingdom

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