- The UK has joined European allies in discussions over a possible release of emergency diesel reserves.
- The US is considering restricting diesel exports as fuel prices rise, with Washington pressing France and Germany to release their own stocks.
- Britain gets more than a third of its diesel imports from the US, adding to concerns over a potential supply disruption.
Britain is in talks with European allies about releasing emergency diesel reserves, as the US considers an export ban and global fuel supplies remain under pressure.
Officials from the UK, France, Germany, Italy and Ireland joined discussions with the European Commission on Thursday (1) about whether diesel stocks should be released, according to an EU official. The talks come after the Trump administration urged France and Germany to draw down their emergency reserves to help bring down global fuel prices.
Washington has reportedly warned that France and Germany could face a US diesel export ban if they do not release reserves. Reuters reported that the US has asked the European Union to release 120 million barrels of diesel over six months.
The UK has not been specifically named as a target of the proposed US restrictions, but its involvement in the European discussions reflects concerns over what a disruption to American supplies could mean for the country's already stretched fuel market.
Why Britain's diesel supply is under scrutiny
Diesel prices have already reached record levels in Britain. The average price hit 199.18p a litre earlier this week, passing the previous record set in June 2022.
The pressure is coming as several major sources of refined fuel face disruption. The conflict involving Iran has affected Middle Eastern supplies, while attacks on Russian refineries have reduced available exports. China has also suspended exports of oil products to most destinations for October, adding another source of pressure to an already tight market.
Britain is particularly exposed to changes in the international diesel market. The latest UK Government security-of-supply report shows that 35.5 per cent of the country's diesel imports came from the US in 2024, making America the UK's largest single source.
Chancellor John Healey, according to reports, said the Government was taking the possibility of an American export ban "very seriously", adding that Britain had its own stocks and was working with the US and other countries to find ways of easing the disruption.
A US official told Reuters, "It is in Europe's best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers."
US Energy Secretary Chris Wright reportedly said the administration expected European countries to announce new diesel supplies soon.
"We've lost some diesel exports from the Middle East, although we're restoring those, and we've lost diesel exports from China," he said. "So that's a lot of interruptions."
Emergency stocks offer a temporary buffer
The discussions are centred on whether governments should use fuel held for emergencies to increase supply to the wider market.
The UK is required to maintain oil stocks equivalent to at least 90 days of net imports under its membership of the International Energy Agency. The Government said its total stocks were equivalent to around 120 days of net imports in July 2025, although part of that stock was held abroad or in arrangements with other countries.
Britain has already taken part in a coordinated international stock release this year. In March, the UK agreed to contribute 13.5 million barrels as part of an International Energy Agency release of 400 million barrels following disruption to global oil markets.
However, releasing emergency supplies is not a permanent solution to a shortage. The reserves are intended to provide a buffer during severe disruptions, while governments and energy companies work to restore normal supply.
Europe's reserves are concentrated in countries including France and Germany. Reuters reported that Germany holds about 5.6 million tonnes of emergency diesel and France around 8.2 million tonnes, together accounting for roughly 35 per cent of the EU's emergency diesel and gasoil stocks.
For Britain, the immediate concern is what happens if US supplies become less available at a time when other sources are already under pressure.
The UK is also moving towards a full ban on imports of refined oil made from Russian crude through third countries, with the Government saying a temporary licence will expire by January 1, 2027.
That leaves the country navigating a tightening global fuel market from several directions at once. Whether emergency stocks are released, and how much fuel becomes available as a result, will depend on discussions between European governments and the wider international response to the supply disruption.
