The European Commission has reacted with “concern” to reports that US President Donald Trump may prevent diesel from reaching the global market. The EU warned that any such move would negatively affect both Europe and the US.
Trump is reportedly considering a 90-day export ban to offer temporary relief from high pump prices for US households ahead of midterm elections. US diesel recently reached a record average of $6.52 (£4.93) a gallon.
Olof Gill, a spokesperson for the EU’s executive arm, stated that “any disruption would risk negatively impacting both sides” and that the EU expects “close partners to consult each other before taking measures that affect shared markets.” High-level contacts between the EU and the US administration are ongoing.
Experts suggest a potential ban could be “devastating” for Europe, as US diesel exports have made up a third of the continent’s imports this year, reaching about half by August. This reliance has grown due to reduced supplies from war-damaged refineries in the Middle East and Russia.
In the UK, motorists could face fresh all-time highs for diesel prices. The average cost of diesel was 197.75p a litre on Thursday, up from 142.38p before the Iran war. Thomas Pugh, chief economist at RSM UK, warned that losing almost 90,000 barrels a day of US distillate, or 18% of the UK’s total consumption, would leave the country more exposed to global diesel prices.