EU ready for collective fuel action as diesel hits record highs

Diesel prices have climbed to record levels in the UK and across Europe, prompting emergency talks between governments as the United States pushes European countries to release strategic fuel reserves.

The latest figures show the average UK price of diesel has topped £2 a litre for the first time. That is above the peak reached after Russia's invasion of Ukraine in 2022. Earlier figures had put the average just under £2, before it crossed the threshold. The price is about 40% higher than at the start of the US and Israeli conflict with Iran, a rise of around 59p a litre. Filling an average family car with diesel now costs about £110, some £31 more than when the conflict began.

Diesel is central to road haulage, farming and industry, so higher prices feed quickly into the wider economy. The surge has been driven by several supply shocks. The war with Iran has disrupted refineries and fuel supplies from the Middle East. Russia has restricted diesel exports, and China has suspended most of its fuel exports for October. Ukrainian strikes on Russian refineries have also kept global supplies tight, according to market analysis.

The United States has urged European countries to tap their reserves. At a G20 meeting in Milwaukee, US Trade Representative Jamieson Greer said Washington had been working with European capitals on a solution. He said there was an eagerness on both sides to get more diesel to market and named France, Germany and Italy as countries sitting on reserves. President Trump has gone further, threatening to ban US diesel exports unless France and Germany begin releasing emergency stocks. The US Treasury Secretary has also called on Europe to release stockpiles to reduce pump prices for US consumers ahead of November's midterm elections.

The pressure is politically sensitive. US polling from the Associated Press suggests 73% of Americans disapprove of President Trump's handling of the economy, and 65% of US adults blame his policies for high prices rather than other economic drivers. In Europe, the European Union's Energy Task Force, made up of the European Commission and the 27 member states, has held a call on the situation. EU officials say the bloc is ready for collective action on fuel stocks. An emergency meeting of European energy ministers was held, with the UK sending a representative. The UK government is understood to be in talks with EU partners about releasing additional strategic fuel reserves if necessary.

The UK's exposure is significant. It imports around 55% of its diesel, with roughly a quarter of that coming from the US. Other official figures suggest the US supplied 31% of UK diesel imports last year. Across Europe, the US supplies around half of diesel imports. France, Germany and Italy are reported to hold large stockpiles, described in one assessment as around 900 days worth of supply. The UK has a much smaller reserve, at about 40 days. The Netherlands and Belgium are also important suppliers and trading hubs for UK imports.

The UK transport minister insisted the country's supply of diesel is robust and comes from a diverse range of sources. He said people should not be concerned about shortages and pointed to the freeze in fuel duty. But political analysts said the government was offering little confidence that prices will be protected, especially if the US carries out an export ban.

Economists and energy analysts warn that an export ban would be counterproductive. Paul Hickin, editor in chief at Petroleum Economist, said it would mean high prices all round and described it as toxic. He said the US Energy Secretary Chris Wright has argued against such a move and has pushed instead for Europe to release stocks to talk Trump down. Hickin also said European reserves are not held in the same caverns as US reserves, and that holding oil products is costly. The priority has shifted from efficiency to reliability and security of supply.

The wider economic effects are already visible. Eurozone inflation is close to 4% after jumping more than expected in September, driven by fuel costs. French President Emmanuel Macron has urged G7 countries to act together without imposing export restrictions, in what was widely read as a message to Washington. With diesel prices near records on both sides of the Atlantic, governments are trying to balance emergency reserves, domestic politics and the risk of deeper supply disruption.