US says Europe should ready fuel supplies as Trump threatens diesel ban

ByOliver Smith, Senior business producer, Simon Jack, Business editor and Archie Mitchell, Business reporter.

Key points

• Diesel rates have hit an all-time high in the UK, with the latest RAC figures showing average pump costs at 199.79p per litre, up from 142.38p.
• There were 15.1 million diesel vehicles on UK roads at the end of June, according to the Department for Transport.
• The comments followed his Treasury Secretary Scott Bessent urging for Europe to immediately ready and release such supplies.
• Britain's Energy Minister Martin McCluskey was on a call with European counterparts on Thursday to discuss the potential ban.
• But David Fyfe, chief economist at Argus Media, remarked cutting off American supply would probable cause international rates to skyrocket.

Donald Trump has remarked he may ask European countries to release some of their diesel reserves as he mulls a ban on US exports of the fuel against the backdrop of a global shortage.

Notably, the comments followed his Treasury Secretary Scott Bessent urging for Europe to immediately ready and release such supplies. "American farmers, truckers, and businesses should not be left carrying the burden" as rates soar, he argued.

For context, the US has threatened to restrict diesel exports against the backdrop of surging costs due to the war in Iran. The matter is top of mind for US voters ahead of the crucial midterm elections.

On Thursday, Britain held discussions with European partners concerning the potential release of diesel reserves in response to any ban.

Notably, the US is a vital supplier of diesel to the world, exporting between 1.2 and 1.5 million barrels per day, with experts warning a ban on shipments abroad could put further pressure on rates in other countries.

"We're thinking about it very seriously, " Trump remarked of an export ban at the weekend.

While Bessent stated they should do so "immediately", on Thursday Trump continued that he may ask European countries to release some of their diesel reserves.

"Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions, " Bessent remarked in a post on social media.

In practice, the intends come weeks ahead of November elections in the US, where control of Congress will be up for grabs. The president is due to travel throughout the US campaigning for Republicans in hopes of keeping control of the House and Senate.

Diesel rates in the UK hit record highs this week and are hovering just under 200p per litre, according to motoring organisation the RAC.

For context, a source familiar with the discussions informed the BBC it was prudent to prepare a co-ordinated response with other countries, including those throughout EU, but continued that there were still European reserves left from a coordinated release of strategic fuel stocks earlier in the year.

"We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry, " a administration spokesperson stated. Though rates are anticipated to rise further, the administration has stressed that there is no cause for concern concerning potential diesel shortages. What a US diesel export ban could mean for you.

For context, a European Commission spokesperson remarked today that there were "lots of calls, lots of meetings" taking place on the diesel situation, including with "high level contacts" in the US administration.

Rates of petrol and diesel globally have skyrocketed since the outbreak of the US-Israel war in Iran in February. The closure of the vital Strait of Hormuz. It typically transports around a fifth of the world's oil and gas, has pushed up the cost of products produced from oil.

In practice, an export ban from Russia, additionally a major supplier of diesel, has went on to the pressure on rates.

Trump has argued that keeping any surplus barrels of diesel in the US would lower pump rates domestically, offering immediate relief to drivers, truckers, and businesses ahead of the midterm elections.

Since it is employed by the haulage industry and in agriculture, it is particularly challenging to reduce demand, diesel is harder to refine than gasoline and.

In practice, the UK is heavily reliant on imports. Although the four refineries in the UK create more than enough petrol to meet demand, they do not produce enough diesel for the country's needs.

There were 15.1 million diesel vehicles on UK roads at the end of June, according to the Department for Transport. That is a drop from 15.7 million a year before.

There were 9.8 million diesel cars, down year on year from 10.4 million.

In short, US says Europe should ready fuel supplies as Trump threatens diesel ban is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.