Chancellor John Healey said the UK is discussing a possible US diesel export stoppage with American officials and preparing domestic stock measures should Washington ban exports. Diesel reached a record 199.18p per litre amid supply strains tied to tensions in the Middle East and Russia's invasion of Ukraine. Healey urged a diplomatic settlement to ease price pressures and warned of the cost-of-living impact as the government readies a "breathing space" Budget on 28 October.
UK In Talks With US As Diesel Prices Hit Record — Government Prepares For Possible US Export Ban
Chancellor John Healey [EPA]
The UK government is in active talks with US authorities about a potential halt to diesel exports and is preparing domestic contingency measures in case Washington implements a ban, Chancellor John Healey told BBC News.
Rising Prices and Supply Strains
Diesel prices in the UK climbed to a record 199.18p per litre, according to the RAC, as global supply pressures intensify. Analysts point to heightened tension in the Middle East involving Iran and ongoing disruption from Russia's war in Ukraine as key drivers of increased fuel costs. Petrol prices are also elevated, with the average at 174.13p per litre.
Government Response
Healey described current diesel prices as "extreme" and confirmed ministers are discussing the situation with the US while preparing the UK’s own stock measures. Speaking at the Labour Party conference in Liverpool, he said the government is working closely with the Americans to seek solutions — ideally a diplomatic settlement to ease pressure on supply.
"We're also making the provision that we may need to and we have our own stocks in the UK," Healey said.
Why a US Ban Matters
The UK imports roughly one third of its diesel from the United States; an American ban on exports would likely push UK pump prices even higher. US sources indicate President Donald Trump is considering a ban partly to reduce domestic fuel costs ahead of key midterm elections. The BBC has reached out to the White House for comment.
Industry Warnings and Household Impact
The RAC warned that diesel prices have entered "uncharted territory," underlining how exposed the UK remains to international events. Healey said he is "very aware" of the resulting cost-of-living pressures and is shaping what he called a "breathing space" Budget scheduled for 28 October.
Tax Timeline
The freeze on fuel duty, introduced by the previous government in 2022, is due to expire at the end of the year. Duty is scheduled to rise by 3p in January and a further 2p in March unless the government takes action.
Implications: A US export ban would tighten supplies and lift prices further, increasing pressure on businesses and household budgets. The UK is pursuing diplomatic engagement and contingency stock measures while monitoring global developments.
Help us improve.
