Donald Trump has indicated that he may request European countries to release some of their diesel reserves as he contemplates a ban on US exports of the fuel amid a global shortage. This statement followed Treasury Secretary Scott Bessent's call for Europe to prepare and release such supplies immediately, emphasizing that 'American farmers, truckers, and businesses should not be left carrying the burden' as prices increase.
The US has threatened to limit diesel exports due to rising costs linked to the ongoing conflict in Iran. This issue is significant for US voters ahead of the upcoming midterm elections. On Thursday, Britain engaged in discussions with European partners regarding the potential release of diesel reserves in response to any export ban.
The US is a crucial supplier of diesel globally, exporting between 1.2 and 1.5 million barrels per day. Experts warn that a ban on exports could exacerbate price pressures in other nations. 'We're thinking about it very seriously,' Trump stated regarding the export ban over the weekend.
On Thursday, Trump reiterated that he may ask European nations to release some of their diesel reserves, while Bessent urged for immediate action. 'Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions,' Bessent said in a social media post.
These discussions come just weeks before the November elections in the US, where control of Congress is at stake. The president plans to campaign across the US for Republican candidates to maintain control of the House and Senate.
Diesel prices in the UK reached record highs this week, nearing 200p per litre, according to the RAC. Britain's Energy Minister Martin McCluskey participated in a call with European counterparts on Thursday to discuss the potential ban. A source familiar with the talks informed the BBC that it is wise to prepare a coordinated response with other countries, including those in the EU, although there are still European reserves available from a previous coordinated release of strategic fuel stocks earlier this year.
'We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry,' a government spokesperson stated. The government has assured that there is no immediate concern regarding diesel shortages, though prices are anticipated to rise further.
A European Commission spokesperson mentioned that there are ongoing discussions and meetings regarding the diesel situation, including high-level contacts with the US administration. Global petrol and diesel prices have surged since the onset of the US-Israel conflict in Iran in February, with the closure of the Strait of Hormuz, a critical oil transport route, contributing to rising prices.
An export ban from Russia, another significant diesel supplier, has further intensified price pressures. Trump has argued that retaining surplus diesel in the US would lower domestic pump prices, providing immediate relief to drivers, truckers, and businesses ahead of the midterm elections. However, David Fyfe, chief economist at Argus Media, cautioned that cutting off American supply could lead to skyrocketing international prices.
In the UK, diesel prices have reached an all-time high, with the latest RAC figures reporting average pump prices at 199.79p per litre, up from 142.38p. Diesel is more challenging to refine than gasoline and is essential for the haulage industry and agriculture, making it difficult to reduce demand. The UK relies heavily on imports, as its four refineries produce sufficient petrol but not enough diesel to meet national needs. As of June, there were 15.1 million diesel vehicles on UK roads, a decrease from 15.7 million the previous year, including 9.8 million diesel cars, down from 10.4 million.