Chancellor of the Exchequer John Healey has revealed that the UK government is in active discussions with US authorities to head off a potential ban on diesel exports. Speaking on the sidelines of the Labour Party Conference in Liverpool, Healey stated that while the US does not explicitly cite the UK, a restriction on American exports would significantly impact British consumers.
Healey described current UK diesel prices as “extreme,” noting that they hit a new record high of 199.33p per litre on Monday. This surge surpasses the previous peak recorded in June 2022 and is attributed to supply pressures resulting from the ongoing conflict between the US and Israel with Iran, alongside the war between Russia and Ukraine. Global fuel prices have risen over the past seven months due to disruptions in oil production and transportation in the Middle East.
The UK relies on the United States for approximately one-third of its diesel imports. According to US sources, President Donald Trump is considering an export ban as a strategy to lower domestic prices ahead of upcoming midterm elections. In response, Healey emphasized the need for a diplomatic settlement in the Middle East to ease the cost-of-living pressures on households and businesses.
The Chancellor, who is preparing a Budget for October 28, acknowledged the urgency of the situation. He warned that the current pricing reflects how exposed the UK remains to international events. Additionally, a freeze on fuel duty, originally implemented by the previous Conservative government, is set to expire at the end of the year, with scheduled increases in January and March that Healey aims to address through his “breathing space” fiscal plan.
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