UK Diesel Supply "Robust" Despite US Pressure & Soaring Prices!
UK Diesel Supply "Robust" Despite US Pressure & Soaring Prices!
Worried about diesel shortages? The UK government says its supply is 'robust' despite record prices and US calls to tap reserves. Get the full story!
The UK government has moved to reassure the public amidst growing concerns over diesel shortages and soaring fuel prices, with Transport Minister Keir Mather asserting the nation's supply is “robust” and “resilient.” This assurance comes as the United States urges European countries to tap into their strategic reserves to stabilize the volatile market.
Britain recently engaged in crisis talks with Brussels on Thursday to discuss the potential release of fuel stocks. These discussions come against a backdrop of record-high diesel prices in the UK, which for the first time reached £2 per litre. The RAC reported the average price hit 200.01p on Friday, surpassing the previous peak of 199.09p set in June 2022 after Russia's invasion of Ukraine.
US Treasury Secretary Scott Bessent has called on European nations to “immediately” begin utilizing their reserves. Earlier on Thursday, US President Donald Trump had reportedly told reporters he “may” call for European countries to draw down from their reserves, adding to the pressure.
The significant price hikes are attributed largely to disruptions in global supplies, exacerbated by conflicts such as the US-Israel war against Iran and the ongoing conflict between Russia and Ukraine. The UK is particularly vulnerable, importing nearly 55% of its diesel, with almost a third of that supply traditionally coming from the US.
Minister Mather, speaking on Friday, emphasized the UK’s “diverse range of supply” and “resilience built into our system.” He stated,
We are working very closely with our US counterparts to stress the importance of that relationship, and the importance of sustaining flows of diesel around the world.
He also highlighted collaborations with international bodies like the International Energy Agency and European partners.
Despite the rising costs at the pump, Mather reassured the public that the government is aware of the situation and that the freeze in fuel duty remains in place. He urged people not to be concerned about shortages, reiterating the inherent resilience within the supply system.
Simon Williams, head of policy at the RAC, expressed concern over the situation, noting that prices show “no signs” of slowing down. He calculated that filling an average family car with diesel now costs £110, an increase of almost £32 since the start of the US and Iran war. Williams warned that this surge would be “very challenging for households and companies,” particularly those with high mileage, such as haulage firms and commuters.
He highlighted the irony that diesel vehicles, once considered cost-effective for long journeys, are now significantly burdening consumers' pockets.
As a member of the International Energy Agency, the UK is obligated to maintain oil stocks equivalent to at least 90 days of net oil imports. These reserves are intended to be used during severe global supply disruptions, providing a crucial buffer in times of crisis.
