Donald Trump has said he may ask European countries to release some of their diesel reserves as he considers banning US exports of the fuel.
The US President’s comment comes after Treasury Secretary Scott Bessent urged Europe to get ready to release diesel supplies immediately, arguing that US farmers, truckers, and businesses “should not be left carrying the burden” as prices soar.
The US has threatened to restrict diesel exports after the war in Iran caused sharp price rises for US voters ahead of the midterm elections in November.
On Thursday, the UK held talks with European partners about the potential release of diesel reserves in response to any ban.
Banning exports would flood the US market with diesel, and could bring prices down significantly for American drivers.
But experts warn such a ban would put further pressure on diesel prices in other countries, unless they can access further supplies.
The US is a vital supplier of diesel to the world, exporting between 1.2 and 1.5 million barrels per day.
Over half of the UK’s diesel is imported, with 31% of the imports coming from the US.
On Thursday, Trump was asked whether he would call on European countries to release some of their own diesel reserves.
“We may do that. They have some diesel,” he said.
An earlier post from Bessent on social media said European countries should “make additional supplies immediately available”.
The president is set to travel across the US campaigning for Republicans in the coming weeks in hopes of keeping control of the House and Senate in the November’s elections.
Diesel prices in the UK hit record highs this week and are hovering just under 200p per litre, according to motoring organisation the RAC.
UK Energy Minister Martin McCluskey was on a call with European counterparts on Thursday to discuss the potential ban.
A source familiar with the discussions told the BBC it was prudent to prepare a co-ordinated response with other countries, including those across EU, but added that there were still European reserves left from a coordinated release of strategic fuel stocks earlier in the year.
“We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry,” a government spokesperson said.
The government has stressed that there is no cause for concern about potential diesel shortages, though prices are expected to rise further.
A European Commission spokesperson said today that there were “lots of calls, lots of meetings” taking place on the diesel situation, including with “high level contacts” in the US administration.
Potentially adding to the pressure on the global diesel market, Chinese refiners have reportedly halted October exports of some fuel products as Beijing prioritises domestic supplies.
The BBC has contacted the Chinese embassy in Washington for comment.
Prices of petrol and diesel globally have skyrocketed since the outbreak of the US-Israel war in Iran in February. The closure of the vital Strait of Hormuz, which typically transports around a fifth of the world’s oil and gas, has pushed up the price of products made from oil.
An export ban from Russia, also a major supplier of diesel, has added to the pressure on prices.
Trump has argued that keeping any surplus barrels of diesel in the US would lower pump prices domestically, offering immediate relief to drivers, truckers, and businesses ahead of the midterm elections.
