UK energy secretary Miatta Fahnbulleh is in direct contact with her US counterpart Chris Wright as Donald Trump threatens to curb diesel exports to Europe. The talks come as British diesel prices near a wartime record and Washington pushes France and Germany to release emergency fuel stockpiles.
Fahnbulleh is holding crunch talks with US energy secretary Chris Wright over a potential move to choke off American diesel exports to Europe, a person familiar with the discussions said. The Trump administration is pressuring the UK and Europe to tap emergency stockpiles of the fuel to relieve a global shortage sparked by the conflict in the Middle East.
Washington weighs an export ban
Trump is reportedly weighing a range of protectionist trade measures should Europe refuse to release its reserves, from curbing exports to select countries to an outright ban on US-produced diesel. Energy minister Martin McCluskey joined a call with EU commissioners on Thursday, and participants agreed to maintain close contact as events develop.
According to Investing.com, US Energy Secretary Chris Wright said on Fox News he was "highly confident they will" release the stocks. The Trump administration has told Germany and France to draw down emergency diesel inventories or face a potential US export ban, according to three people close to the discussions. America's pressure is believed to be aimed predominantly at France and Germany, which have access to a considerably larger pool of emergency reserves than the UK.
Britain faces a bigger squeeze
Any loss of US diesel would hit Britain hard: the country imports over half its diesel supply, and roughly a third of that comes from the United States. The squeeze is compounded by the prospect of Britain's largest refinery, Fawley in Hampshire, shuttering for 10 weeks of planned maintenance — a site that produces kerosene for Heathrow and a fifth of the diesel sold at British forecourts.
UK diesel prices have climbed to 200p a litre, nearing the record set during the height of Russia's invasion of Ukraine. Filling a typical family car now costs almost £110, £31 more than before the onset of the Iran war. Chancellor John Healey acknowledged the prices were extreme at the Labour Party conference, adding that a diplomatic settlement ending the fighting with Iran would ease the crisis.
A spokeswoman for the Department for Energy Security and Net Zero said the UK has a diverse and resilient supply and continues to engage with international partners and the fuel industry.
Sources: Oilprice.com, Commodities & Futures News
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