UK in talks with EU partners to release strategic fuel reserves if needed, BBC understands

The UK government is currently engaged in discussions with its European Union counterparts about the possibility of releasing additional strategic fuel reserves, including diesel, should circumstances necessitate such action, according to information obtained by the BBC. These talks follow recent statements by former US President Donald Trump, who threatened to prohibit diesel exports from the United States as a measure to lower the soaring fuel prices faced by American consumers.

In the UK, diesel prices have reached unprecedented levels this week, hovering just below 200 pence per litre, as reported by the RAC motoring organisation. The United States plays a critical role in the global diesel supply chain, exporting between 1.2 and 1.5 million barrels daily. Industry experts have cautioned that if the US enacts a ban on diesel exports, it could exacerbate the price pressures felt worldwide. Speaking over the weekend, Trump commented on the potential ban, saying, “We’re thinking about it very seriously.”

On Thursday, UK Energy Minister Martin McCluskey participated in a conference call with European officials to discuss the implications of the export ban. A knowledgeable source shared with the BBC that coordinated planning among European nations is underway, though there remain existing reserves from an earlier, collective release of strategic fuel stocks during the year. A government spokesperson reassured the public by stating, “We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry.” While the government emphasized that no immediate diesel shortage is expected, they acknowledged that prices are likely to continue climbing.

Meanwhile, a spokesperson for the European Commission confirmed ongoing intensive discussions involving numerous calls and meetings, some including senior contacts within the US administration, to address the diesel supply challenges. The International Energy Agency’s governing board is scheduled to convene soon to review the situation. Fuel prices worldwide have surged following the conflict between the US and Israel in Iran that erupted in February, particularly due to disruptions around the Strait of Hormuz, through which about 20% of global oil and gas shipments pass. In addition, Russia’s ban on diesel exports has intensified the upward pressure on prices. Trump justified the export ban as a means to keep surplus diesel within the US, which he believes would provide immediate relief to drivers, truckers, and businesses ahead of the midterm elections. However, David Fyfe, chief economist at Argus Media, warned that such a move would likely cause international diesel prices to soar.

The UK faces unique challenges in managing its diesel supply. Unlike petrol, which UK refineries can produce in quantities sufficient to meet domestic demand, diesel production falls short of the country’s needs. Diesel is particularly difficult to refine and is essential for sectors such as haulage and agriculture, making demand reduction challenging. The latest figures from the Department for Transport show there were 15.1 million diesel vehicles on UK roads at the end of June, a decrease from 15.7 million a year earlier. Of these, 9.8 million were diesel cars, down from 10.4 million in the previous year

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