Diesel crisis: UK minister holds emergency talks with US energy secretary
Energy secretary Miatta Fahnbulleh is holding crunch talks with her American counterpart about an escalating diesel spat that has seen Treasury secretary Scott Bessent urge Europe to release emergency reserves “immediately”.
City AM understands that Fahnbulleh is in direct contact with US energy secretary Chris Wright to discuss a US move to potentially choke off diesel exports to Europe that threatens to upend supply and send prices at the pump soaring, a person familiar with the discussions said.
The UK and Europe are being pressured by the Trump administration to tap into their emergency stockpiles of the fuel to relieve a major global shortage sparked by the conflict in the Middle East.
The President is weighing a range of protectionist trade measures should Europe refuse to release its reserves, ranging from curbing exports to select countries to an all out ban on US-produced diesel.
On Wednesday, Bessent ramped up pressure on European allies, telling them to tap into their stockpiles “immediately” and “match… their commitments with action”. In a post on social media, he wrote: “Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions.”
He added that American truck drivers, farmers and businesses “should not be left carrying the burden of a global diesel fuel shortage”.
Europe has been racing to agree a joint response to the US’s pressure, which comes just weeks before the country’s pivotal mid-term elections in which prices at the pump have become a major talking point.
Energy minister Martin McCluskey joined a call with EU commissioners on Thursday to weigh their response, a person familliar with discussions said. But participants could not commit any concrete actions beyond agreeing “to maintain close contact” as events develop.
America’s broadsides are believed to be aimed predominantly at France and Germany, which have access to a considerably larger pool of emergency reserves than the UK.
Diesel prices ‘extreme’ – Healey
But any loss of US diesel would be enormously damaging for Britain, which currently imports over half its supply of the refined fuel. Roughly a third of that currently comes from the States, meaning any ban would choke off one of the country’s major sources of supply in an already starved global market.
Adding to the situation’s severity is the prospect of Britain’s largest refinery shuttering its operations for 10 weeks as for planned maintenance. The Fawley site in Hampshire is responsible for producing kerosene for Heathrow and a fifth of diesel used at British forecourts.
Diesel prices have been rising across the globe, as some of the world’s largest refineries became targets in both the Middle East and Ukraine conflicts. In Britain, the fuel has climbed to 200p a litre, nearing the record set during the height of Russia’s full-scale invasion of Ukraine.
For drivers, the rise means it costs almost £110 to fill up a typical family car, £31 more than before the onset of the Iran war.
Chancellor John Healey acknowledged diesel prices were “extreme” in an interview at Labour party conference.
“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,” he said, “which would be a diplomatic settlement [and] an end to the fighting with Iran.”
A spoksewoman for the Department for Energy Security and Net Zero said: “We have a diverse and resilient supply. We continue to engage with our international partners and the UK fuel industry.”