Britain has asked the US to be exempted from a possible diesel export ban. British officials have held talks with their American counterparts in recent days, Bloomberg reported, citing a person familiar with the discussions.
London is concerned because the country is among the largest importers of American diesel. The fuel is widely used by freight transport, agricultural machinery and some passenger cars. A possible supply restriction could increase pressure on the British market.
The average price of a liter of diesel in Britain reached a record 199.18 pence on September 28, or about 1.99 pounds. The data is from the motoring organization RAC. British Chancellor John Healy said the price hikes were adding to the pressure on citizens and businesses.
Washington discusses temporary ban
The administration of President Donald Trump is considering a short-term ban on diesel exports, but no final decision has been announced. On September 27, Trump said he was considering the measure “very seriously”.
The idea was presented against the backdrop of record fuel prices in the United States. On September 23, Chancellor Scott Besant announced the possibility of introducing a full or partial ban. The average price of diesel in the country at that time reached $ 6.53 per gallon, which is almost $ 3 more than a year earlier.
Politico reported that US authorities have discussed a 90-day ban. Oil industry representatives have warned that restricting exports could subsequently lead to a new rise in prices. The White House denies that a decision has already been prepared.
London seeks measures against price increases
The British government has already postponed a planned increase in fuel tax for September until next year. The authorities have also created a website through which drivers can compare prices at different gas stations.
For Britain, an exemption from potential American restrictions would be important for the stability of supplies, but there is currently no public confirmation that Washington will grant it.
Sources: RBC, Bloomberg, Politico