UK tries to stop Trump's diesel export ban
John Healey said the government is in talks with the US over Donald Trump's threat to stop exports.
UK seeks to head off Trump’s diesel export ban
The UK is in discussions with US officials over a possible halt to diesel exports and has begun making preparations for a ban, Chancellor John Healey told BBC News.
Diesel prices in the UK hit a fresh peak on Monday amid supply pressures linked to the US-Israel conflict with Iran and Russia’s war with Ukraine.
Fuel costs are climbing worldwide, and US President Donald Trump has threatened to ban diesel exports, saying at the weekend: "We're thinking about it very seriously."
Healey, who acknowledged that UK diesel prices are "extreme", said the government was talking with the US, adding: "We're also making the provision that we may need to and we have our own stocks in the UK."
Speaking on the sidelines of the annual Labour Party Conference in Liverpool, Healey said: "We work very closely with the Americans.
"In the end, we're also working with the Americans where we can try and put in place what will solve this, or at least significantly ease it, which would be a diplomatic settlement [and] an end to the fighting with Iran."
The UK relies on the US for about a third of its diesel imports, and a ban would push prices even higher.
US sources indicate that Trump is weighing a ban in an effort to lower prices for domestic consumers ahead of the crucial midterm elections.
The BBC has approached the White House for comment.
In the UK, the average price of a litre of diesel rose to 199.18p, according to the RAC motoring organisation, overtaking the previous record of 191.5p in June 2022 after Russia launched its full-scale invasion of Ukraine.
Petrol prices are also continuing to rise, with a litre now costing 174.13p.
Over the past seven months, the Iran war has badly disrupted the production and transport of wholesale oil across the region, driving up the cost of fuels derived from oil.
The RAC said diesel prices had moved into "uncharted territory" and were a reminder of "just how exposed the UK is to events occurring far away".
Healey said he was "very aware" of these cost of living pressures as he prepared what he called a "breathing space" Budget on 28 October.
A freeze on fuel duty, first introduced by the Conservative government in 2022, is set to end at the close of the year. Duty is due to rise by 3p in January and another 2p in March.
Healey said: "Fundamentally, what we need is a settlement in the Middle East. We need an easing of the pressure of costs on business, the costs on households and on ordinary families that we see at the pumps in the most extreme level today for diesel."