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UK in Talks With US to Head Off Trump Diesel Export Ban

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Chancellor John Healey says the UK is negotiating with Washington and preparing for a possible ban as diesel hits a record 199.33p a litre.

The United Kingdom is negotiating with United States authorities to head off a possible halt to American diesel exports and has begun preparing for such a ban, Chancellor John Healey has told BBC News. His comments came after President Donald Trump said at the weekend he was considering blocking diesel shipments, telling reporters: "We're thinking about it very seriously."

Speaking on the sidelines of the annual Labour Party Conference in Liverpool, Healey described current UK diesel prices as "extreme" and confirmed the government was in discussions with Washington. "We're also making the provision that we may need to and we have our own stocks in the UK," he said. The warning landed the same day pump prices reached a new record.

The average price of a litre of diesel hit 199.33p on Monday, according to the RAC, passing the previous peak of 199.09p set in June 2022 after Russia launched its full-scale invasion of Ukraine. Petrol is also climbing, with a litre currently costing 174.23p.

The UK relies on the United States for roughly a third of its diesel imports, and Healey acknowledged that a ban would push prices higher still. US sources indicate Trump is weighing the move to lower costs for American consumers ahead of the country's midterm elections.

Why prices are surging

The increases stem from supply pressures tied to two conflicts: the US-Israel confrontation with Iran and Russia's war in Ukraine. Over the past seven months, the war involving Iran has severely disrupted the production and transport of wholesale oil across the region, driving up the price of fuels refined from crude.

The RAC said diesel prices had entered "uncharted territory," calling the record a reminder of "just how exposed the UK is to events occurring far away." The motoring group's figures underline how quickly overseas instability is feeding through to British forecourts.

Healey framed a diplomatic resolution as the ultimate fix. "We work very closely with the Americans," he said. "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."

Pressure on the October Budget

The chancellor said he was "very aware" of the strain on households as he prepares what he called a "breathing space" Budget, due to be delivered on 28 October. The record pump prices arrive at a politically sensitive moment for the government's fiscal plans.

A freeze on fuel duty, first introduced by the previous Conservative government in 2022, is set to expire at the end of the year. Under the current schedule, duty would rise by 3p in January and by a further 2p in March, adding to costs already inflated by global supply strains.

Healey tied the domestic pressure directly to events in the Middle East. "Fundamentally, what we need is a settlement in the Middle East," he said. "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."

The BBC has contacted the White House for comment. For now, ministers are working on two tracks at once: pressing for a diplomatic settlement that could ease global fuel prices, while readying domestic stocks in case Trump follows through on his threat and American diesel stops flowing.

UK diesel prices, Trump diesel export ban, John Healey, RAC fuel prices, fuel duty freeze, cost of living, Labour Party Conference, petrol prices UK

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