Trump’s diesel export threat puts Europe’s fuel reserves in focus

British diesel drivers are paying almost £2 a litre just as a major overseas supply line faces a new threat. US President Donald Trump is considering blocking diesel exports to ease costs at home before November’s midterm elections, according to BBC Business (direct). For Britain, which gets 31% of its imported diesel from the US, that would put another strain on a fuel market already squeezed by war and disrupted supplies.

Trump has said he may ask European countries to release some of their diesel reserves. US Treasury Secretary Scott Bessent has already urged Europe to prepare an immediate release, arguing that American farmers, truckers and businesses should not bear the burden of soaring prices. The choice facing governments is increasingly sharp: use emergency stocks to relieve pressure, or risk a US trade restriction that could shift more of the price pain overseas.

Bessent said US farmers, truckers and businesses “should not be left carrying the burden” of rising prices.

Cheaper fuel at home, tighter supplies abroad

The US exports between 1.2 million and 1.5 million barrels of diesel a day, most of it to Latin America. France, the Netherlands and Britain also buy significant volumes. Keeping those barrels in the US could increase domestic supply and bring down American prices. But David Fyfe, chief economist at Argus Media, warned that cutting off US supplies would be likely to send international prices sharply higher. The proposed restriction would therefore reach well beyond Europe.

Britain is particularly exposed because imports meet more than half its diesel needs. Alongside the US, the Netherlands and Belgium are key suppliers, together providing more than a third of British diesel imports. The country’s four refineries make more petrol than Britain needs, but not enough diesel. RAC figures put average diesel pump prices at a record 199.79 pence a litre, compared with 142.38 pence in the earlier figure cited by the BBC.

The stakes extend beyond motorists. Diesel powers road haulage and farm machinery, and the source reports that demand is difficult to cut. It is also harder to refine than petrol. Britain still had 15.1 million diesel vehicles on its roads at the end of June, according to Department for Transport figures, despite a decline from 15.7 million a year earlier. Higher prices leave both households and businesses facing fuel bills they cannot easily avoid.

Europe weighs its emergency cushion

UK Energy Minister Martin McCluskey discussed the possible ban with European counterparts on Thursday, ahead of an EU meeting on the issue on Friday. A person familiar with the talks told the BBC that preparing a coordinated response was prudent and that some European reserves remained from an earlier joint release of strategic stocks, fuel held for emergencies. The British government said supplies were diverse and resilient and played down concerns about shortages, although prices were expected to rise further.

The EU holds nearly 109 million tonnes of emergency crude oil and fuel stocks, roughly a third of them diesel and related products. EU rules require reserves covering 61 days of domestic consumption. Separately, International Energy Agency rules require members, including Britain, to hold oil stocks equal to 90 days of net imports. These buffers sit against a difficult backdrop: sanctions and refinery attacks have disrupted Russian supply, while the Iran war and the closure of the Strait of Hormuz have constrained flows from the Middle East.

A European Commission spokesperson said officials were holding numerous calls and meetings, including senior-level contacts with Washington. Chinese refiners have also reportedly stopped October exports of some fuels, adding another possible constraint. The next developments to watch are whether Trump turns his export threat into policy and whether Europe agrees to release more reserves. Neither outcome is settled in the BBC report.