What We Know About Trump's Threatened UK Diesel Export Ban

UK diesel prices reached a record 199.33 pence per litre on Monday, according to the RAC motoring organisation, and Chancellor John Healey says the government is now in talks with the United States over President Donald Trump's threat to stop diesel exports. Healey told BBC News the UK is "making the provision" to draw on its own fuel stocks if Washington moves ahead with a ban.

What is Trump threatening to do?

Trump said over the weekend that his administration is "thinking about it very seriously" when asked about halting US diesel exports, according to BBC News. The White House told the BBC no official policy has been announced and that Trump "is evaluating all the options on the table" as he looks to bring down pump prices for American consumers. US sources cited by the BBC say the threat is tied to the run-up to the midterm elections.

Why did UK diesel prices just hit a record?

The RAC's Monday figure of 199.33p a litre surpassed the previous high of 199.09p set in June 2022, after Russia's full-scale invasion of Ukraine, the BBC reported. The RAC said diesel prices had entered "uncharted territory." Petrol has also climbed, reaching 174.23p a litre, per the same RAC data cited by the BBC. The BBC attributes seven months of disruption to wholesale oil production and transport to the US-Israel conflict with Iran layered on top of the ongoing Russia-Ukraine war.

How dependent is the UK on US diesel imports?

Around a third of the UK's diesel imports come from the United States, according to BBC News. A US export ban would, in the BBC's framing, push UK prices even higher than Monday's record, given that dependence.

What is the UK government doing about it?

Healey, speaking at the Labour Party Conference in Liverpool, said the UK is working with Washington on two tracks: seeking a diplomatic path to "solve this, or at least significantly ease it" through an end to the fighting involving Iran, and preparing domestic stock contingencies in case a ban goes ahead. "We work very closely with the Americans," Healey said, per BBC News, adding that Britain is "also making the provision that we may need to and we have our own stocks in the UK." He called current diesel prices "extreme."

What happens to UK fuel duty this winter?

Healey is preparing what he called a "breathing space" Budget for 28 October, according to BBC News. A fuel duty freeze first put in place by the previous Conservative government in 2022 is due to expire at the end of this year. Absent further action, duty is scheduled to rise by 3 pence in January and by a further 2 pence in March, per the BBC's reporting. Healey said the underlying fix is a Middle East settlement that would ease "the pressure of costs on business, the costs on households and on ordinary families that we see at the pumps."

Where this leaves prices in the near term

No timeline has been given by either government for a resolution. The BBC notes the White House has made no formal announcement, and Healey's own comments frame talks as ongoing rather than concluded, meaning the record set Monday may not be the final one before the October Budget or a US decision on exports.