Donald Trump is poised to hammer British drivers as he mulls curbs on US diesel exports, which could see the price rise to £3 a litre.
The US President is 'very seriously' considering restrictions in a desperate bid to keep costs for Americans down and shore up support ahead of November's midterm elections.
The White House has sparked market wobbles by teeing up a mystery announcement at 7pm UK time – after previously trying to play down the prospect of a full ban on exports.
Andy Burnham stressed ministers are 'on it' this evening, suggesting the UK is seeking an exemption from any action.
The Prime Minister said during an LBC phone-in that 'we are working closely with the US' on the diesel issue. Pressed whether he would ask for special treatment, the premier said 'we do make that case all of the time.'
Mr Burnham admitted Britons are facing a 'hard situation' as UK diesel prices hit a new all-time high.
The RAC revealed average pump prices have reached 199.18p, topping the 199.09p seen in June 2022.
Brent Crude, which has soared during the Iran war crisis, topped $108 a barrel overnight, suggesting the problems could get worse.
The grim news on diesel will also heap pressure on ministers to ditch plans for fuel duty to increase from next year.
Donald Trump says he is considering export curbs that could twist the knife again on motorists
Andy Burnham said he knew people are 'struggling' after the RAC revealed average pump prices have reached 199.18p, topping the 199.09p seen in June 2022
The RAC said average pump prices have reached 199.18p, topping the 199.09p seen in June 2022
The extent of any limits remains unclear, but they could have a devastating impact on British motorists. Experts fear the price of diesel could reach £3 a litre.
Calls are growing for Chancellor John Healey to act to curb costs for motorists in the Budget next month.
Speaking to ITV at Labour's conference in Liverpool on Monday, Mr Healey said he would look to give Britons 'a bit of breathing space' but failed to commit to scrapping planned rises in fuel duty.
Asked if he would cancel the increases slated for next January and March, the Chancellor said: ' So look, I'm concerned, I'm conscious of the pressure this is putting on people, on businesses as well as people at the pumps, and this is a government that will do what we can to give people a bit of breathing space.
'To give both a bit of breathing space from the cost of living and the cost of business.
'But those are decisions that I will make in the round at the Budget when I announce it in a month today.'
RAC head of policy Simon Williams said: 'The average price of a litre of diesel has now reached the highest level in UK history at 199.18p, in what will be a financial blow to households and businesses that use their vehicles regularly.
'The cost of filling up an average family car is now almost £110, £31 more than it was at the start of the US-Iran conflict.
'By eclipsing the previous highest price of 199.09p seen in June 2022, the diesel price has entered new uncharted territory.
'This spells pain not only at the pumps for drivers, but for everyone who buys goods or services that rely on diesel lorries and vans; undoubtedly these increased costs will be passed on to consumers.
'Petrol prices, too, are continuing to rise. A litre of unleaded stands at 174.13p on average, 41p more than at the start of the war – taking the cost of a full tank to nearly £96.
'These extraordinarily high prices are another reminder of just how exposed the UK is to events occurring far away from its shores.
'Only a sustained lower oil price – over several weeks, not days – will lead to cheaper prices at the pumps.'
Mr Williams urged Mr Healey to take steps at the Budget to lower pressure on motorists.
Asked about the potential impact of US export curbs during a Politico event at Labour conference last night, Business Secretary Jonathan Reynolds said: 'Clearly something like that… would be a significant concern to the UK.
'Our resilience comes from a diverse supply in a whole range of areas and fuel is no different to that.'
Calls are growing for Chancellor John Healey to act to curb costs for motorists in the Budget next month
Economists have warned that export curbs could reduce US diesel prices in the short-term, but might actually push them higher in the long term. There are fears that the world's largest exporter limiting supplies might well push European countries into recession.
Attending a golf tournament in Illinois last night, Mr Trump told Fox News: 'We're thinking about it very seriously...
'That can oftentimes lead to a little bit of an increase on gasoline for cars, so we're looking at it very seriously. We may do it.'
Fuel duty, which raised £24billion last year, accounts for 52.95p a litre of the price for petrol and diesel.
It was due to rise by 5p but last May Prime Minister Keir Starmer pushed that back until the end of the year.
Opposition parties are urging Mr Healey to extend the freeze further.