Donald Trump is considering measures that could hit British motorists hard by restricting US diesel exports.
The president is said to be taking the prospect “very seriously” as he weighs ways to keep fuel costs down for Americans and shore up support ahead of November’s midterm elections.
Markets were unsettled after the White House scheduled a mystery announcement for 7pm UK time, despite earlier attempts to play down the possibility of a full export ban.
Andy Burnham said ministers were “on it” this evening, indicating that the UK may be seeking an exemption from any restrictions imposed by Washington.
Speaking during an LBC phone-in, Mr Burnham said: “We are working closely with the US” on the diesel issue. Asked whether he would seek special treatment for Britain, he replied: “We do make that case all of the time.”
Mr Burnham acknowledged that Britons were facing a “hard situation” as UK diesel prices reached a new record high.
The RAC said average pump prices had climbed to 199.18p per litre, surpassing the previous record of 199.09p set in June 2022.
Brent crude, which has surged during the Iran war crisis, rose above $108 a barrel overnight, raising fears that fuel prices could climb even further.
The worsening diesel crisis is also expected to increase pressure on ministers to abandon plans for a fuel-duty rise next year.
Donald Trump is weighing export restrictions that could deliver another blow to British motorists
Andy Burnham said he knew people were “struggling” after the RAC reported record average diesel prices of 199.18p per litre
The RAC said average diesel prices had reached 199.18p per litre, exceeding the June 2022 record of 199.09p (file picture)
The scale of any restrictions remains unknown, but the consequences for British motorists could be severe. Experts have warned that prices could eventually reach £3 a litre.
Calls are growing for Chancellor John Healey to introduce measures to reduce the burden on drivers in next month’s Budget.
RAC head of policy Simon Williams said: “The average price of a litre of diesel has now reached the highest level in UK history at 199.18p, delivering a significant financial blow to households and businesses that rely on their vehicles regularly.
“Filling an average family car now costs almost £110 — £31 more than it did at the start of the US-Iran conflict.
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“By exceeding the previous record of 199.09p, recorded in June 2022, diesel prices have entered uncharted territory.
“The impact will be felt not only by drivers at the pumps, but by anyone buying goods or services transported by diesel-powered lorries and vans. Those higher costs will inevitably be passed on to consumers.
“Petrol prices are rising too. Unleaded now averages 174.13p per litre — 41p more than at the start of the war — taking the cost of a full tank to almost £96.
“These exceptionally high prices are another reminder of how exposed the UK remains to events taking place far beyond its shores.”
‘Only a sustained lower oil price – over several weeks, not days – will lead to cheaper prices at the pumps.’
Mr Williams urged Mr Healey to take steps at the Budget to lower pressure on motorists.
Asked about the potential impact of US export curbs during a Politico event at Labour conference last night, Business Secretary Jonathan Reynolds said: ‘Clearly something like that … would be a significant concern to the UK.
‘Our resilience comes from a diverse supply in a whole range of areas and fuel is no different to that.’
Economists have warned that export curbs could reduce US diesel prices in the short-term, but might actually push them higher in the long term. There are fears that the world’s largest exporter limiting supplies might well push European countries into recession.
Attending a golf tournament in Illinois last night, Mr Trump told Fox News: ‘We’re thinking about it very seriously…
Calls are growing for Chancellor John Healey to act to curb costs for motorists in the Budget next month
‘That can oftentimes lead to a little bit of an increase on gasoline for cars, so we’re looking at it very seriously. We may do it.’
Fuel duty, which raised £24billion last year, accounts for 52.95p a litre of the price for petrol and diesel.
It was due to rise by 5p but last May prime minister Sir Keir Starmer pushed that back until the end of the year.
Opposition parties are urging Mr Healey to extend the freeze further.