UK minister holds emergency talks with US over diesel export threat

Energy Secretary Miatta Fahnbulleh is engaged in urgent discussions with her American counterpart regarding the potential curtailment of diesel exports to Europe. According to a person familiar with the matter, the UK government is in direct contact with US Energy Secretary Chris Wright to address a move that could severely disrupt fuel supply chains and cause pump prices to surge. The Trump administration is reportedly pressuring the UK and European nations to release emergency fuel stockpiles to alleviate a global shortage exacerbated by the ongoing conflict in the Middle East.

The US President is said to be considering a series of protectionist trade measures if Europe refuses to release its reserves. These options range from restricting exports to specific countries to implementing a complete ban on the sale of US-produced diesel. In response to these developments, Energy Minister Martin McCluskey participated in a call with EU commissioners on Thursday to coordinate a collective reaction. Participants in the discussion agreed to maintain close communication as the situation evolves. A US official stated that it is in Europe’s best interest to collaborate with the United States to increase the supply of refined products and reduce costs for consumers.

Analysts believe the American pressure is directed primarily at France and Germany, which hold significantly larger emergency reserves than the UK. However, any reduction in US diesel exports would have a profound impact on Britain, which imports more than half of its refined fuel supply. Approximately one third of this imported volume currently originates from the United States, meaning a ban would eliminate a critical source of supply in an already constrained global market. The situation is further complicated by the planned ten-week maintenance shutdown at Fawley, Britain’s largest refinery in Hampshire. This facility produces kerosene for Heathrow Airport and one fifth of the diesel used at UK forecourts.

Diesel prices have risen globally as major refineries in the Middle East and Ukraine have become targets in recent conflicts. In the UK, the cost of diesel has climbed to 200p per litre, approaching the record high set during the peak of Russia’s full-scale invasion of Ukraine. For drivers, this increase means filling a typical family car now costs nearly £110, which is £31 more than before the onset of the Iran war. Chancellor John Healey acknowledged that diesel prices are extreme during an interview at the Labour Party conference. He stated that the government is working with the Americans to find a solution, ideally through a diplomatic settlement and an end to the fighting with Iran. A spokesperson for the Department for Energy Security and Net Zero confirmed that the UK has a diverse and resilient supply and continues to engage with international partners and the fuel industry.