Britain discusses releasing diesel reserves with EU — The Guardian

Britain is holding talks with the European Commission, Germany, France, Italy and Ireland on the possible release of emergency diesel fuel stockpiles. The consultations are taking place amid threats by US President Donald Trump to impose restrictions on diesel exports from the United States, The Guardian reports.

Pressure from Washington

On Thursday, British ministers discussed the possibility of using reserves with European partners. This came after the Trump administration demanded that Germany and France release fuel stockpiles to ease rising global energy prices. Otherwise, these countries could face a ban on diesel exports from the United States.

An unnamed US official told Reuters that it was in Europe’s interest to work with the United States to increase the supply of petroleum products and reduce consumer costs. According to the publication, British local energy minister Martin McCluskey took part in the conversation with representatives of EU countries. UK Energy Minister Miatta Fanbulle also contacted US Energy Secretary Chris Wright to express concern.

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Risks for the British market

Britain does not produce enough diesel to meet domestic demand. About one-third of the country’s imports of this fuel last year came from the United States, so losing US supplies could sharply raise prices at filling stations. According to the motoring organization RAC, the average price of a litre of diesel in the UK reached a record 199.72 pence on Wednesday.

European filling stations are unlikely to run out of fuel, as about 70% of the diesel consumed in Europe is produced by local refineries and countries hold reserves. At the same time, experts fear that competition for cargoes on the global market will lead to higher fuel prices.

US military action in Iran disrupted energy supplies through the Strait of Hormuz and contributed to a surge in oil prices. Before the war, in February, Brent cost about $72 per barrel, while on Thursday its price exceeded $101. Russia, the aggressor state, extended its ban on diesel exports until the end of October after Ukrainian strikes on oil refining companies.