Chancellor John Healey has confirmed that the UK government is in urgent discussions with United States authorities to avert a proposed diesel export ban that could push British fuel prices to unprecedented levels. The diplomatic push follows warnings that a total or partial stoppage of US fuel exports would severely disrupt domestic supplies and further inflate costs at the pump.
The intervention comes as average UK diesel prices reached a record 199.18p per litre on Monday, 28 September 2026. This figure surpasses the previous record set in June 2022, while average unleaded petrol prices currently stand at 174.13p per litre. The US Treasury is reportedly reviewing a potential ban on fuel exports.
Election Pressure and Supply Chains
The threat of an export ban originates from the Trump administration, which is seeking to lower domestic fuel costs in the United States ahead of the midterm elections on 4 November 2026. Donald Trump has stated he is considering the restriction “very seriously” as a measure to provide immediate relief to American motorists, despite warnings of the potential impact on international trade partners.
Britain is particularly vulnerable to shifts in American energy policy. In 2025, the United States supplied approximately 31% of the UK’s diesel imports. This reliance has deepened following the closure of the Lindsey and Grangemouth refineries in 2025, leaving the UK with only four operational domestic refineries.
Contingency Planning
The Chancellor noted that while talks with Washington are ongoing, the UK is preparing contingency measures. The government has the authority to tap into national fuel stocks, which currently consist of a strategic reserve equivalent to 42 days’ worth of diesel. While this buffer provides short-term security, it is intended to manage temporary shocks rather than a sustained loss of a major trade partner.
The global fuel market is already under significant strain due to ongoing hostilities between the US and Iran, which have led to a blockade of the Strait of Hormuz. This geopolitical instability has restricted alternative supply routes, making the potential loss of US exports even more critical for European markets.
While Chancellor Healey has described the discussions with US officials as urgent, a final decision from the US Treasury is expected to be reached before the November polling date.
