UK Engages European Allies on Emergency Diesel Stockpiles Amid US Supply Threats
The UK is in discussions with European nations regarding the potential release of emergency diesel reserves following threats from the Trump administration to cut off US supplies.
By The Guardian
The UK is currently in talks with European allies about the possibility of releasing emergency diesel stockpiles. This comes after former US President Donald Trump threatened to halt US supplies of the fuel.
On Thursday, UK ministers held discussions with representatives from the European Commission, Germany, France, Italy, and Ireland to evaluate the need to draw down reserves. The Trump administration urged Germany and France to release their stockpiles to alleviate soaring global energy prices, warning that failure to do so could lead to a US export ban.
This warning, initially reported by Reuters, signifies an escalation in pressure on European countries, as Trump considers a broader ban aimed at reducing domestic fuel prices ahead of the US midterm elections in November.
A US official stated, “It is in Europe’s best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers.”
Martin McCluskey, the UK minister for local energy, participated in the discussions with EU counterparts.
The Trump administration has expressed frustration with France and Germany, accusing them of not fulfilling commitments to release oil and petrol stocks. While fuel stations across Europe are not expected to run dry—given that Europe produces approximately 70% of its diesel from domestic refineries—experts warn that competing for cargoes on the global market could lead to increased prices.
The UK’s dependency on US diesel is significant, as about a third of its diesel imports last year originated from the US. The average price of a litre of diesel in the UK reached a record high of 199.72p, according to the RAC.
John Healey, the Chancellor, acknowledged earlier this week that UK diesel prices were “extreme” and confirmed that the government is in discussions with the US to prevent a potential export ban.
The ongoing conflict in Iran has disrupted energy supplies through the Strait of Hormuz, contributing to rising oil prices. Brent crude, the international benchmark, traded at approximately $72 a barrel in February but surpassed $101 on Thursday.
Releasing additional stockpiles poses a challenge for European nations, which must balance the need to reduce domestic fuel prices with the necessity of maintaining reserves for a potential energy crisis this winter, should the situation in Iran deteriorate further.
Elizabeth de Jong, chief executive of Fuels Industry UK, stated, “The UK continues to need fuels – from transport to chemicals, agriculture and defence.” She highlighted that the latest US threats demonstrate the UK’s vulnerability in relying solely on overseas production for energy security.
US Energy Secretary Chris Wright indicated on Wednesday that the US administration anticipates announcements from Europe regarding new diesel supplies. He noted, “We’ve lost some diesel exports from the Middle East, although we’re restoring those, and we’ve lost diesel exports from China.”
UK Energy Secretary Miatta Fahnbulleh has been in contact with Wright to express concerns regarding the situation.
Trump has indicated he is “very seriously” considering a US diesel export ban to address rising prices and has advised Ukraine’s President Volodymyr Zelenskyy to pause strikes on Russian oil refineries, fearing that such actions could further escalate prices. Russia has already extended its ban on diesel exports until the end of October due to Ukrainian attacks on refining facilities.
A government spokesperson remarked, “We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry.”