Diesel price tops £2 a litre as UK 'faces winter crisis' if Europe bows to Trump demands to release emergency stocks before US mid-terms

UK diesel prices topped £2 a litre today amid warnings the crisis could get even worse this winter if Donald Trump's demands to deploy emergency stocks.

The president is heaping pressure on Western countries to act to bring down energy prices before US mid-term elections next month.

Mr Trump has threatened to ban US diesel exports unless his traditional allies comply, potentially wreaking more havoc on top of disruption from the Iran war. 

But there is alarm that releasing reserves now could leave the continent at the mercy of supply shocks in the coming months, with the potential for the Houthis to disrupt Saudi output through the Red Sea.

Ministers tried to reassure Brits that diesel supplies are 'resilient', but stonewalled over whether the Government will bow to the US demands. 

The RAC announced this morning that the average pump price has reached 200.01p a litre, another all-time high. Experts warn diesel could hit £3 a litre if the US follows through on threats.

Economists say limiting exports could help American prices in the short-term but would likely backfire in the longer term. 

Mr Trump is heaping pressure on Western countries to act to bring down energy prices, which are spiking as the Iran war continues to rage

Mr Trump is heaping pressure on Western countries to act to bring down energy prices, which are spiking as the Iran war continues to rage

RAC head of policy Simon Williams said: 'This is a pump price threshold that no-one wanted to cross – the average price of a litre of diesel has risen to a record 200.01p and is showing no signs of slowing, heaping more misery onto motorists.

'The cost of filling up an average family car is now £110, almost £32 more than it was at the start of the US-Iran war.

'This will be very challenging for households and companies that drive a lot of miles, from commuters, haulage and delivery firms, businesses with large fleets all the way through to sole traders.

'In a cruel twist, it's diesel vehicles, which were once considered the most cost-effective option for lengthy journeys, that are now burning a hole in people's pockets.'

The separate RAC Foundation found that average diesel prices on the Government's Fuel Finder site were over £2 a litre earlier this month. But this is the first time the mark has been reached on the most-followed measure.  

UK officials spoke with their counterparts in Germany, France, Italy and Ireland yesterday as well as at the European Commission to consider using stockpiles of the fuel.

Britain holds only 40 days worth of diesel reserves, whereas some other nations have more than 200 days. 

The US is believed to have asked the European Union to release 120 million barrels of diesel in the next six months.

US Energy Secretary Chris Wright told reporters yesterday that the US administration expected announcements soon from Europe about new diesel supplies.

Treasury Secretary Scott Bessent said European states should release diesel reserves 'immediately'.

'Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions,' he said.

Mr Trump has said he is 'very seriously' considering restrictions on diesel exports. The US is the biggest exporter in the world.

Andy Burnham has indicated he is lobbying Mr Trump against such an embargo.

Around a quarter of the UK's supplies typically come from America. 

Diesel has been particularly hard-hit by the chaos in the Middle East. 

Even before that Europe had become increasingly dependent on US fuel after banning Russian imports over Vladimir Putin's full-scale invasion of Ukraine. 

A Whitehall source said that Washington was deploying 'brazen negotiating tactics'. 

They told the Times that bowing to US demands could lead to a 'really, really bad' supply shortage this winter.

Many garages in the UK are already charging £2 a litre for diesel, and experts warn they could hit £3 if the US follows through on threats (file picture)

Many garages in the UK are already charging £2 a litre for diesel, and experts warn they could hit £3 if the US follows through on threats (file picture)

There are concerns that the Red Sea could be effectively closed by Houthi action, sparking another wave of energy shocks.

'These reserve stocks are there to act as a buffer against supply shortages,' the source said. 'They are not there to bring fuel prices down.'

Motoring organisations have urged the Government to extend the current 5p cut in fuel duty beyond the end of this year, when it is currently scheduled to be reversed.

A decision on what happens to fuel duty is due to be announced by Chancellor John Healey in his Budget speech on October 28.

Mr Burnham admitted earlier this week that the UK is on track for an 'energy crisis' this winter, as costs surge on international markets. 

A 4 per cent hike to Ofgem's energy price cap took effect yesterday, and there are warnings that household bills are set to soar by another £300 from January.

Mr Healey has insisted he will try to help families at the Budget on October 28, but the Government is facing a desperate struggle to balance the books as debt interest costs rise.  

Campaigners urged the Government to make plans now to support all households with energy costs this winter because of the severity of forecast bill hikes.

Transport minister Keir Mather insisted the UK had a wide-range of sources of fuel.

Mr Mather told Sky News: 'I want to reassure people this morning that the United Kingdom has got a diverse range of supply when it comes to diesel.

'We have resilience built into our system for that reason. We are working very closely with our US counterparts to stress the importance of that relationship, and the importance of sustaining flows of diesel around the world, but also working through international fora in the International Energy Agency and partners in Europe from whom we get a proportion of our diesel imports as well.'

He added: 'Although prices have gone up at the pump, the Government is aware of that and the freeze in fuel duty is still in place. People shouldn't be concerned about shortages because of the inherent resilience that is built into that system.'

Pressed on LBC whether he agreed with President Trump about European diesel reserves, he said: 'We're working closely with our European partners on diesel supply. It means we're continuing those discussions about how we retain our resilience and robustness of our supply chains.

'President Trump is welcome to make those comments, we've got to focus here at home about ensuring that we have diversity of supply into our economy. Our European partners are absolutely central to that, particularly the flows of diesel coming through the Netherlands.'

Original source Diesel price tops £2 a litre as UK 'faces winter crisis' if Europe bows to Trump demands to release emergency stocks before US mid-terms

Back to home